Rock-bottom prices don’t always mean rock-bottom businesses. The stocks we’re examining today have all touched their 52-week lows, creating a classic investor’s dilemma: bargain opportunity or value trap?
While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. 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:
Simply Good Foods (SMPL)
One-Month Return: -5.8%
Best known for its Atkins brand that was inspired by the popular diet of the same name, Simply Good Foods (NASDAQ:SMPL) is a packaged food company whose offerings help customers achieve their healthy eating or weight loss goals.
Why Do We Steer Clear of SMPL?
- Lackluster 5.2% annual revenue growth over the last three years indicates the company is losing ground to competitors
- Forecasted revenue decline of 8.9% for the upcoming 12 months implies demand will fall off a cliff
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 31.9 percentage points
Simply Good Foods is trading at $10.24 per share, or 6.2x forward P/E. If you’re considering SMPL for your portfolio, see our FREE research report to learn more.
Zoetis (ZTS)
One-Month Return: -3%
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Why Are We Cautious About ZTS?
- 2.7% annual revenue growth over the last two years was slower than its healthcare peers
- Forecasted revenue decline of 1.6% for the upcoming 12 months implies demand will fall off a cliff
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
At $73.07 per share, Zoetis trades at 11.9x forward P/E. Read our free research report to see why you should think twice about including ZTS in your portfolio.
One Stock to Buy:
RB Global (RBA)
One-Month Return: -10.2%
Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE:RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.
Why Are We Bullish on RBA?
- Impressive 27.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 19.3% annually
- Robust free cash flow margin of 14% gives it many options for capital deployment
RB Global’s stock price of $80.50 implies a valuation ratio of 17.4x forward P/E. 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
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.