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 the poor sentiment is creating a buying opportunity and two facing legitimate challenges.
Two Stocks to Sell:
Transcat (TRNS)
One-Month Return: -11.7%
Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ:TRNS) provides measurement instruments and supplies.
Why Are We Cautious About TRNS?
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 1.7 percentage points
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its decreasing returns suggest its historical profit centers are aging
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $72.61 per share, Transcat trades at 21x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TRNS.
Oaktree Specialty Lending (OCSL)
One-Month Return: -0.5%
Managed by Oaktree Capital Management, one of the world's premier alternative investment firms, Oaktree Specialty Lending (NASDAQ:OCSL) is a business development company that provides customized financing solutions to mid-market companies across various industries.
Why Are We Out on OCSL?
- Sales tumbled by 1.9% annually over the last two years, showing market trends are working against its favor during this cycle
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 10.6% annually, worse than its revenue
- Annual tangible book value per share declines of 1.7% for the past five years show its capital management struggled during this cycle
Oaktree Specialty Lending’s stock price of $13.59 implies a valuation ratio of 8.1x forward P/E. Check out our free in-depth research report to learn more about why OCSL doesn’t pass our bar.
One Stock to Watch:
Booz Allen Hamilton (BAH)
One-Month Return: -5.6%
With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE:BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches.
Why Are We Positive On BAH?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 10.7% over the past two years
- Revenue base of $11.96 billion gives it economies of scale and some distribution advantages
- Share buybacks catapulted its annual earnings per share growth to 14.6%, which outperformed its revenue gains over the last five years
Booz Allen Hamilton is trading at $102.93 per share, or 15.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 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-micro-cap company Tecnoglass (+1,754% 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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