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 are two stocks where you should be greedy instead of fearful and one where the skepticism is well-placed.

One Stock to Sell:

J&J Snack Foods (JJSF)

One-Month Return: -2.4%

Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ: JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers.

Why Does JJSF Give Us Pause?

1. Revenue base of $1.6 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
2. Estimated sales growth of 1.6% for the next 12 months implies demand will slow from its three-year trend
3. Free cash flow margin shrank by 2.7 percentage points over the last year, suggesting the company is consuming more capital to stay competitive

J&J Snack Foods’s stock price of $113.91 implies a valuation ratio of 21x forward P/E. Check out our free in-depth research report to learn more about why JJSF doesn’t pass our bar.

Two Stocks to Watch:

Verisk (VRSK)

One-Month Return: -9.2%

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Why Should VRSK Be on Your Watchlist?

1. Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 7.4% over the past two years
2. Strong free cash flow margin of 30.5% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
3. Returns on capital are climbing as management makes more lucrative bets

Verisk is trading at $267 per share, or 35.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

RLI (RLI)

One-Month Return: +1.3%

Founded in 1965 and named after its original focus on "replacement lens insurance" for contact lens wearers, RLI (NYSE: RLI) is a specialty insurance company that underwrites property, casualty, and surety products through wholesale brokers, independent agents, and carrier partnerships.

Why Do We Watch RLI?

1. Annual revenue growth of 14.6% over the past five years was outstanding, reflecting market share gains this cycle
2. Market penetration was impressive this cycle as its net premiums earned expanded by 13.9% annually over the last two years
3. ROE punches in at 27.8%, illustrating management’s expertise in identifying profitable investments

At $67.59 per share, RLI trades at 3.8x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

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 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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