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.

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. That said, here is one stock where the poor sentiment is creating a buying opportunity and two where the outlook is warranted.

Two Stocks to Sell:

Sprout Social (SPT)

One-Month Return: -24.2%

Born from the recognition that businesses needed a centralized way to handle their growing social media presence, Sprout Social (NASDAQ: SPT) provides a comprehensive software platform that helps businesses manage, analyze, and optimize their presence across various social media networks.

Why Do We Think Twice About SPT?

1. Products, pricing, or go-to-market strategy may need some adjustments as its 11.1% average billings growth over the last year was weak
2. Estimated sales growth of 10.9% for the next 12 months implies demand will slow from its two-year trend
3. Rapid expansion strategy came at the expense of operating margin profitability

At $7.15 per share, Sprout Social trades at 0.9x forward price-to-sales. Read our free research report to see why you should think twice about including SPT in your portfolio.

American Express Global Business Travel (GBTG)

One-Month Return: -31.8%

Originally spun off from American Express in 2014 but maintaining the Amex GBT brand, Global Business Travel Group (NYSE: GBTG) provides end-to-end business travel and expense management solutions, connecting corporate clients with travel suppliers and offering specialized software services.

Why Do We Steer Clear of GBTG?

1. 5.3% annual revenue growth over the last two years was slower than its software peers
2. High servicing costs result in a relatively inferior gross margin of 61% that must be offset through increased usage
3. Operating margin expanded by 1.5 percentage points over the last year as it scaled and became more efficient

American Express Global Business Travel is trading at $5.04 per share, or 0.7x forward price-to-sales. To fully understand why you should be careful with GBTG, check out our full research report (it’s free).

One Stock to Buy:

TransDigm (TDG)

One-Month Return: -10.2%

Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE: TDG) develops and manufactures components and systems for military and commercial aviation.

Why Should You Buy TDG?

1. Average organic revenue growth of 10.1% over the past two years demonstrates its ability to expand independently without relying on acquisitions
2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 26.8% annually, topping its revenue gains
3. Robust free cash flow margin of 20.4% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy

TransDigm’s stock price of $1,301 implies a valuation ratio of 31.6x forward P/E. 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

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.