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 is one stock poised to prove the bears wrong and two where the skepticism is well-placed.
Two stocks to sell:
Sportsman's Warehouse (SPWH)
One-Month Return: -8.2%
A go-to destination for individuals passionate about hunting, fishing, camping, hiking, shooting sports, and more, Sportsman's Warehouse (NASDAQ: SPWH) is an American specialty retailer offering a diverse range of active gear, equipment, and apparel.
Why Is SPWH Risky?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Performance over the past three years was negatively impacted by new share issuances as its earnings per share dropped by 59.3% annually, worse than its revenue
Sportsman's Warehouse’s stock price of $1.07 implies a valuation ratio of 16.9x forward EV-to-EBITDA. To fully understand why you should be careful with SPWH, check out our full research report (it’s free).
Genesis Energy (GEL)
One-Month Return: +0.1%
Operating a 64% stake in the Poseidon Pipeline, one of the Gulf of Mexico's largest crude oil pipelines, Genesis Energy (NYSE: GEL) provides midstream services like pipeline transportation, storage, and processing for crude oil and natural gas producers and refiners.
Why Are We Out on GEL?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- High extraction costs and unfavorable asset economics are reflected in its low gross margin of 25.8%
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $14.08 per share, Genesis Energy trades at 8.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including GEL in your portfolio.
One stock to buy:
TransDigm (TDG)
One-Month Return: -0.1%
Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE: TDG) develops and manufactures components and systems for military and commercial aviation.
Why Should You Buy TDG?
- Average organic revenue growth of 9.3% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Share repurchases over the last five years enabled its annual earnings per share growth of 29.9% to outpace its revenue gains
- Strong free cash flow margin of 20% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
TransDigm is trading at $1,108 per share, or 24.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-quality stocks for all market conditions
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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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
