Hitting a new 52-week low can be a pivotal moment for any stock. These floors often mark either the beginning of a turnaround story or confirmation that a company faces serious headwinds.
Price charts only tell part of the story. Our team at StockStory evaluates each company's underlying fundamentals to separate temporary setbacks from structural declines. Keeping that in mind, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
LKQ (LKQ)
One-Month Return: -6.6%
A global distributor of vehicle parts and accessories, LKQ (NASDAQ: LKQ) offers its customers a comprehensive selection of high-quality, affordably priced automobile products.
Why Are We Out on LKQ?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Estimated sales growth of 1.2% for the next 12 months implies demand will slow from its two-year trend
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
LKQ is trading at $30.47 per share, or 8.1x forward P/E. Check out our free in-depth research report to learn more about why LKQ doesn’t pass our bar.
CooperCompanies (COO)
One-Month Return: -0.6%
With a history dating back to 1958 and a portfolio spanning two distinct healthcare segments, Cooper Companies (NASDAQ: COO) develops and manufactures medical devices focused on vision care through contact lenses and women's health including fertility products and services.
Why Are We Wary of COO?
- 7.3% annual revenue growth over the last two years was slower than its healthcare peers
- Free cash flow margin dropped by 8.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- ROIC of 5.1% reflects management’s challenges in identifying attractive investment opportunities
At $67 per share, CooperCompanies trades at 15.6x forward P/E. Read our free research report to see why you should think twice about including COO in your portfolio.
Waste Connections (WCN)
One-Month Return: -6.7%
Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE: WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.
Why Does WCN Fall Short?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 4.1 percentage points
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
Waste Connections’s stock price of $172.41 implies a valuation ratio of 31.3x forward P/E. To fully understand why you should be careful with WCN, check out our full research report (it’s free).
Stocks We Like More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. 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 Tecnoglass (+1,754% 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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