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.

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. Keeping that in mind, here are three stocks where the skepticism is well-placed and some better opportunities to consider.

Winnebago (WGO)

One-Month Return: -13.7%

Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE: WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.

Why Is WGO Risky?

1. Annual sales declines of 3.2% for the past five years show its products and services struggled to connect with the market during this cycle
2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Winnebago is trading at $24.83 per share, or 11.5x forward P/E. Dive into our free research report to see why there are better opportunities than WGO.

Whirlpool (WHR)

One-Month Return: -20.7%

Credited with introducing the first automatic washing machine, Whirlpool (NYSE: WHR) is a manufacturer of a variety of home appliances.

Why Do We Think WHR Will Underperform?

1. Annual sales declines of 7.3% for the past five years show its products and services struggled to connect with the market during this cycle
2. Sales were less profitable over the last five years as its earnings per share fell by 38.4% annually, worse than its revenue declines
3. 9× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $29.22 per share, Whirlpool trades at 8.9x forward P/E. To fully understand why you should be careful with WHR, check out our full research report (it’s free).

KB Home (KBH)

One-Month Return: -10.8%

The first homebuilder to be listed on the NYSE, KB Home (NYSE: KBH) is a homebuilding company targeting the first-time home buyer and move-up buyer markets.

Why Do We Steer Clear of KBH?

1. Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 20.5% declines over the past two years
2. Diminishing returns on capital suggest its earlier profit pools are drying up

KB Home’s stock price of $44.34 implies a valuation ratio of 12.8x forward P/E. Read our free research report to see why you should think twice about including KBH in your portfolio.

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.