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?
While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. That said, here is one stock where you should be greedy instead of fearful and two facing legitimate challenges.
Two Stocks to Sell:
Beyond Meat (BYND)
One-Month Return: -31.6%
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ:BYND) is a food company specializing in alternatives to traditional meat products.
Why Should You Sell BYND?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Cash burn has widened over the last year, making us question whether it can reliably generate shareholder value
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $7.66 per share, Beyond Meat trades at 0.6x trailing 12-month price-to-sales. If you’re considering BYND for your portfolio, see our FREE research report to learn more.
Waste Connections (WCN)
One-Month Return: -4.9%
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 Are We Wary of WCN?
- Estimated sales growth of 5.8% 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
- ROIC of 6.6% reflects management’s challenges in identifying attractive investment opportunities, and its decreasing returns suggest its historical profit centers are aging
Waste Connections is trading at $155.13 per share, or 26.4x forward P/E. Check out our free in-depth research report to learn more about why WCN doesn’t pass our bar.
One Stock to Watch:
Xylem (XYL)
One-Month Return: -5.4%
Formed through a spinoff, Xylem (NYSE:XYL) manufactures and services engineered products across a wide variety of applications primarily in the water sector.
Why Do We Like XYL?
- Impressive 11.9% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share buybacks catapulted its annual earnings per share growth to 16.3%, which outperformed its revenue gains over the last two years
- Free cash flow margin grew by 7.8 percentage points over the last five years, giving the company more chips to play with
Xylem’s stock price of $102.90 implies a valuation ratio of 17.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.