Rock-bottom prices don't always mean rock-bottom businesses. The stocks we're examining today have all touched their 52-week lows, creating a classic investor's dilemma: bargain opportunity or value trap?
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. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
Procter & Gamble (PG)
One-Month Return: -4.1%
Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble (NYSE: PG) is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.
Why Does PG Give Us Pause?
- Flat unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
- Projected sales growth of 2.9% for the next 12 months suggests sluggish demand
- Capital intensity has ramped up over the last year as its free cash flow margin decreased by 3 percentage points
Procter & Gamble is trading at $152.49 per share, or 21.7x forward P/E. Dive into our free research report to see why there are better opportunities than PG.
Marcus & Millichap (MMI)
One-Month Return: -12.1%
Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Why Do We Pass on MMI?
- Flat sales over the last five years suggest it must innovate and find new ways to grow
- Poor free cash flow margin of -0.2% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Eroding returns on capital suggest its historical profit centers are aging
Marcus & Millichap’s stock price of $28.89 implies a valuation ratio of 221.9x forward P/E. If you’re considering MMI for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Carlisle (CSL)
One-Month Return: -15%
Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE: CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.
Why Could CSL Be a Winner?
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 19.1%, and its operating leverage amplified its profits over the last five years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 23% exceeded its revenue gains over the last five years
- Free cash flow margin increased by 5.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $333.65 per share, Carlisle trades at 14x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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