The past year hasn't been kind to the stocks featured in this article. Each has tumbled to their lowest points in 12 months, leaving investors to decide whether they're witnessing fire sales or falling knives.
While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
Freshpet (FRPT)
One-Month Return: -11.7%
Standing out from typical processed pet foods, Freshpet (NASDAQ: FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.
Why Does FRPT Fall Short?
- Modest revenue base of $1.04 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Cash-burning history makes us doubt the long-term viability of its business model
- Negative returns on capital show that some of its growth strategies have backfired
At $62.49 per share, Freshpet trades at 40.6x forward P/E. To fully understand why you should be careful with FRPT, check out our full research report (it’s free).
Hyster-Yale Materials Handling (HY)
One-Month Return: -10.9%
Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE: HY) designs, manufactures, and sells materials handling equipment to various sectors.
Why Do We Steer Clear of HY?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Sales are projected to tank by 6.9% over the next 12 months as demand evaporates further
- Performance over the past five years was negatively impacted by new share issuances as its earnings per share were flat while its revenue grew
Hyster-Yale Materials Handling’s stock price of $39.04 implies a valuation ratio of 6.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than HY.
One Stock to Buy:
Samsara (IOT)
One-Month Return: -10.7%
From sensors on vehicles to AI-powered cameras that help prevent accidents, Samsara (NYSE: IOT) is a cloud-based Internet of Things platform that helps businesses improve the safety, efficiency, and sustainability of their physical operations.
Why Are We Backing IOT?
- Customers view its software as mission-critical to their operations as its ARR has averaged 33.3% growth over the last year
- Expected revenue growth of 22.1% for the next year suggests its market share will rise
- Operating margin improvement of 19.2 percentage points over the last year demonstrates its ability to scale efficiently
Samsara is trading at $34.80 per share, or 12.1x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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