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.

At StockStory, we dig beneath the surface of price movements to uncover whether a company's fundamentals justify its current valuation or suggest hidden potential. Keeping that in mind, here is one stock poised to prove the bears wrong and two facing legitimate challenges.

Two Stocks to Sell:

PlayStudios (MYPS)

One-Month Return: +4.3%

Founded by a team of former gaming industry executives, PlayStudios (NASDAQ: MYPS) offers free-to-play digital casino games.

Why Do We Pass on MYPS?

1. Performance surrounding its daily active users has lagged its peers
2. Suboptimal cost structure is highlighted by its history of operating margin losses
3. Earnings per share have dipped by 12.6% annually over the past three years, which is concerning because stock prices follow EPS over the long term

PlayStudios is trading at $0.96 per share, or 2.4x forward EV-to-EBITDA. If you’re considering MYPS for your portfolio, see our FREE research report to learn more.

Kraft Heinz (KHC)

One-Month Return: -4.7%

The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ: KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.

Why Do We Avoid KHC?

1. Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
2. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 41.7 percentage points
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging

Kraft Heinz’s stock price of $26 implies a valuation ratio of 9.9x forward P/E. Dive into our free research report to see why there are better opportunities than KHC.

One Stock to Watch:

Paychex (PAYX)

One-Month Return: -4.2%

Once known as the go-to service for small business payroll needs, Paychex (NASDAQ: PAYX) provides payroll processing, HR services, employee benefits administration, and insurance solutions to small and medium-sized businesses.

Why Could PAYX Be a Winner?

1. Sales outlook for the upcoming 12 months calls for 17.4% growth, an acceleration from its three-year trend
2. Excellent operating margin of 39.6% highlights the efficiency of its business model
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

At $131.85 per share, Paychex trades at 7.3x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.