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 skepticism is well-placed.

Two Stocks to Sell:

PagerDuty (PD)

One-Month Return: -12.7%

Started by three former Amazon engineers, PagerDuty (NYSE: PD) is a software-as-a-service platform that helps companies respond to IT incidents fast and make sure that any downtime is minimized.

Why Are We Cautious About PD?

1. Products, pricing, or go-to-market strategy may need some adjustments as its 7% average billings growth over the last year was weak
2. Estimated sales growth of 6.2% for the next 12 months implies demand will slow from its three-year trend
3. Poor expense management has led to operating margin losses

PagerDuty’s stock price of $14.21 implies a valuation ratio of 2.6x forward price-to-sales. Read our free research report to see why you should think twice about including PD in your portfolio.

Bath and Body Works (BBWI)

One-Month Return: -16.9%

Spun off from L Brands in 2020, Bath & Body Works (NYSE: BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.

Why Does BBWI Worry Us?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Estimated sales growth of 2.3% for the next 12 months implies demand will slow from its six-year trend
3. Earnings growth underperformed the sector average over the last six years as its EPS grew by just 9.1% annually

At $27.80 per share, Bath and Body Works trades at 7.6x forward P/E. If you’re considering BBWI for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Centene (CNC)

One-Month Return: -11%

Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE: CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.

Why Could CNC Be a Winner?

1. Solid 15.5% annual revenue growth over the last five years indicates its offering’s solve complex business issues
2. Enormous revenue base of $169.3 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
3. Earnings per share grew by 14.8% annually over the last five years and trumped its peers

Centene is trading at $55.15 per share, or 7.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% 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