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.
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. That said, here is one stock poised to prove the bears wrong and two where the outlook is warranted.
Two Stocks to Sell:
Genesis Energy (GEL)
One-Month Return: -6.9%
Operating a 64% stake in the Poseidon Pipeline, one of the Gulf of Mexico's largest crude oil pipelines, Genesis Energy (NYSE: GEL) provides midstream services like pipeline transportation, storage, and processing for crude oil and natural gas producers and refiners.
Why Do We Think GEL Will Underperform?
- Sales tumbled by 1.5% annually over the last five years, showing market trends are working against it during this cycle
- Costly operations and weak unit economics result in an inferior gross margin of 25.3% that must be offset through higher production volumes
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Genesis Energy is trading at $14.40 per share, or 8.2x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including GEL in your portfolio.
Ladder Capital (LADR)
One-Month Return: -1%
Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE: LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.
Why Are We Cautious About LADR?
- Annual sales declines of 8.3% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Products and services are facing profitability challenges during this cycle, as seen in its flat tangible book value per share over the last five years
At $10.01 per share, Ladder Capital trades at 0.9x forward P/B. Check out our free in-depth research report to learn more about why LADR doesn’t pass our bar.
One Stock to Watch:
EPAM (EPAM)
One-Month Return: -10.2%
Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE: EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products.
Why Does EPAM Stand Out?
- Annual revenue growth of 14.8% over the past five years was outstanding, reflecting market share gains this cycle
- Earnings growth has comfortably beaten the peer group average over the last five years as its EPS has compounded at 12.2% annually
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
EPAM’s stock price of $86.87 implies a valuation ratio of 6.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
