The past year hasn’t been kind to the stocks featured in this article. Each has tumbled to its lowest point in 12 months, leaving investors to decide whether they’re witnessing fire sales or falling knives.

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 are three stocks where the outlook is warranted and some alternatives with better fundamentals.

Carriage Services (CSV)

One-Month Return: -16.7%

Established in 1991, Carriage Services (NYSE: CSV) is a provider of funeral and cemetery services in the United States.

Why Do We Steer Clear of CSV?

1. Annual revenue growth of 3% over the last five years was below our standards for the consumer discretionary sector
2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
3. ROIC hasn’t moved, making investors question whether its recent investments can increase profitability

At $34.03 per share, Carriage Services trades at 9.9x forward P/E. Read our free research report to see why you should think twice about including CSV in your portfolio.

EVgo (EVGO)

One-Month Return: -11.3%

Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ: EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.

Why Are We Wary of EVGO?

1. Persistent operating margin losses suggest the business manages its expenses poorly
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

EVgo is trading at $1.45 per share, or 17.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than EVGO.

Assured Guaranty (AGO)

One-Month Return: -11.2%

Serving as a financial safety net for over $11 trillion in debt service payments since its founding in 2003, Assured Guaranty (NYSE: AGO) provides credit protection products that guarantee scheduled payments on municipal bonds, infrastructure projects, and structured finance obligations.

Why Do We Avoid AGO?

1. Insurance policy sales contracted this cycle as net premiums earned decreased by 3.8% annually over the last five years
2. Pre-tax profit margin declined by 10.5 percentage points over the last two years as its sales cratered
3. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable

Assured Guaranty’s stock price of $75.90 implies a valuation ratio of 0.6x forward P/B. To fully understand why you should be careful with AGO, check out our full research report (it’s free).

Stocks We Like More

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.