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.
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 are three stocks where the skepticism is well-placed and some better opportunities to consider.
Opendoor (OPEN)
One-Month Return: -12.3%
Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.
Why Do We Steer Clear of OPEN?
- Number of homes purchased has disappointed over the past two years, indicating weak demand for its offerings
- Cash-burning history makes us doubt the long-term viability of its business model
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $0.68 per share, Opendoor trades at 0.1x forward price-to-sales. Check out our free in-depth research report to learn more about why OPEN doesn’t pass our bar.
Lancaster Colony (LANC)
One-Month Return: -13.6%
Known for its frozen garlic bread and Parkerhouse rolls, Lancaster Colony (NASDAQ:LANC) sells bread, dressing, and dips to the retail and food service channels.
Why Does LANC Fall Short?
- Muted 5.4% annual revenue growth over the last three years shows its demand lagged behind its consumer staples peers
- Smaller revenue base of $1.89 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Estimated sales growth of 1.7% for the next 12 months implies demand will slow from its three-year trend
Lancaster Colony’s stock price of $164 implies a valuation ratio of 23.2x forward P/E. If you’re considering LANC for your portfolio, see our FREE research report to learn more.
Ziff Davis (ZD)
One-Month Return: -1.4%
Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ:ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets.
Why Should You Sell ZD?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Sales over the last five years were less profitable as its earnings per share fell by 1.6% annually while its revenue was flat
- Free cash flow margin dropped by 17.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Ziff Davis is trading at $30.41 per share, or 4.3x forward P/E. Check out our free in-depth research report to learn more about why ZD doesn’t pass our bar.
Stocks We Like More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.