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. Keeping that in mind, here is one stock poised to prove the bears wrong and two where the outlook is warranted.
Two Stocks to Sell:
ZoomInfo (GTM)
One-Month Return: -11.7%
Operating a platform it calls "RevOS" - short for Revenue Operating System - ZoomInfo (NASDAQ: GTM) provides sales, marketing, and recruiting teams with business intelligence and analytics to identify prospects and deliver targeted outreach.
Why Is GTM Risky?
- Customers had second thoughts about committing to its platform over the last year as its billings plateaued
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 4.6 percentage points
ZoomInfo’s stock price of $5.79 implies a valuation ratio of 1.5x forward price-to-sales. To fully understand why you should be careful with GTM, check out our full research report (it’s free).
Waste Connections (WCN)
One-Month Return: -0.1%
Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE: WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.
Why Do We Think Twice About WCN?
- Estimated sales growth of 5% for the next 12 months implies demand will slow from its two-year trend
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2.5 percentage points
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging
Waste Connections is trading at $170 per share, or 30.5x forward P/E. Dive into our free research report to see why there are better opportunities than WCN.
One Stock to Buy:
Dutch Bros (BROS)
One-Month Return: -1.8%
Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE: BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.
Why Are We Backing BROS?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Average same-store sales growth of 6% over the past two years indicates its restaurants are resonating with diners
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
At $50.40 per share, Dutch Bros trades at 55.8x forward P/E. Is now the right time to buy? See for yourself in our full 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 (+1,326% between June 2020 and June 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.
