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 where you should be greedy instead of fearful and two where the skepticism is well-placed.
Two Stocks to Sell:
Planet Fitness (PLNT)
One-Month Return: -17.1%
Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE: PLNT) is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.
Why Should You Sell PLNT?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience
- Forecasted free cash flow margin suggests the company will fail to improve its cash conversion over the next year
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Planet Fitness’s stock price of $90.92 implies a valuation ratio of 27.1x forward P/E. To fully understand why you should be careful with PLNT, check out our full research report (it’s free).
Otis (OTIS)
One-Month Return: -3.2%
Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE: OTIS) is an elevator and escalator manufacturing, installation and service company.
Why Is OTIS Not Exciting?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Projected sales growth of 5% for the next 12 months suggests sluggish demand
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 7% annually
Otis is trading at $85.49 per share, or 20.3x forward P/E. Check out our free in-depth research report to learn more about why OTIS doesn’t pass our bar.
One Stock to Watch:
HubSpot (HUBS)
One-Month Return: -26.8%
Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE: HUBS) provides an integrated platform that helps businesses attract, engage, and manage customer relationships through marketing, sales, service, and content management tools.
Why Do We Like HUBS?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 19.8% over the last year
- Software is difficult to replicate at scale and leads to a stellar gross margin of 84.1%
- Free cash flow margin is anticipated to expand by 1.9 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends
At $279.65 per share, HubSpot trades at 4.3x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
