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.

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 poised to prove the bears wrong and two facing legitimate challenges.

Two Stocks to Sell:

WD-40 (WDFC)

One-Month Return: +3.1%

Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ: WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.

Why Are We Wary of WDFC?

1. 6.1% annual revenue growth over the last three years was slower than its consumer staples peers
2. Revenue base of $620 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
3. Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its three-year trend

WD-40’s stock price of $199.15 implies a valuation ratio of 32.2x forward P/E. If you’re considering WDFC for your portfolio, see our FREE research report to learn more.

Kyndryl (KD)

One-Month Return: -15.4%

Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers.

Why Do We Think Twice About KD?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 4.8% annually over the last five years
2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
3. Push for growth has led to negative returns on capital, signaling value destruction

At $23.62 per share, Kyndryl trades at 7.8x forward P/E. Check out our free in-depth research report to learn more about why KD doesn’t pass our bar.

One Stock to Watch:

Lantheus (LNTH)

One-Month Return: -5.5%

Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.

Why Are We Positive On LNTH?

1. Impressive 35.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Free cash flow margin grew by 19.6 percentage points over the last five years, giving the company more chips to play with
3. Rising returns on capital show management is finding more attractive investment opportunities

Lantheus is trading at $53.50 per share, or 10.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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