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. That said, here are two stocks poised to prove the bears wrong and one facing legitimate challenges.
One Stock to Sell:
Itron (ITRI)
One-Month Return: -6.4%
Founded by a small group of engineers who wanted to build a more efficient way to read utility meters, Itron (NASDAQ: ITRI) offers energy and water management products for the utility industry, municipalities, and industrial customers.
Why Do We Think Twice About ITRI?
- Annual revenue growth of 1.4% over the last two years was below our standards for the industrials sector
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.4%
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $81.36 per share, Itron trades at 14x forward P/E. If you’re considering ITRI for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
Armstrong World (AWI)
One-Month Return: -11.4%
Started as a two-man shop dating back to the 1860s, Armstrong (NYSE: AWI) provides ceiling and wall products to commercial and residential spaces.
Why Do We Love AWI?
- Market share has increased this cycle as its 12.1% annual revenue growth over the last two years was exceptional
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 24.9%, and its rise over the last five years was fueled by some leverage on its fixed costs
- Free cash flow margin jumped by 5.2 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Armstrong World’s stock price of $157.42 implies a valuation ratio of 18.2x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Paymentus (PAY)
One-Month Return: -15.4%
Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE: PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.
Why Are We Backing PAY?
- Annual revenue growth of 40.2% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 51% annually, topping its revenue gains
Paymentus is trading at $23.45 per share, or 27.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth Stocks for Free HERE.
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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
