The past year hasn’t been kind to the stocks featured in this article. Each has tumbled to its lowest point in 12 months, leaving investors to decide whether they’re witnessing fire sales or falling knives.
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 poised to prove the bears wrong and two where the outlook is warranted.
Two Stocks to Sell:
ESAB (ESAB)
One-Month Return: -15.1%
Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE:ESAB) manufactures and sells welding and cutting equipment for numerous industries.
Why Does ESAB Give Us Pause?
- 4.2% annual revenue growth over the last two years was slower than its industrials peers
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $67.32 per share, ESAB trades at 11x forward P/E. Check out our free in-depth research report to learn more about why ESAB doesn’t pass our bar.
Collegium Pharmaceutical (COLL)
One-Month Return: -14.7%
Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ:COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.
Why Are We Hesitant About COLL?
- Smaller revenue base of $808.2 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Estimated sales growth of 3.4% for the next 12 months implies demand will slow from its two-year trend
- Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 7.6 percentage points
Collegium Pharmaceutical’s stock price of $23.33 implies a valuation ratio of 3.3x forward P/E. Dive into our free research report to see why there are better opportunities than COLL.
One Stock to Watch:
Dick's (DKS)
One-Month Return: -31.1%
Started as a hunting supply store, Dick’s Sporting Goods (NYSE:DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.
Why Does DKS Stand Out?
- Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 3.3% over the past two years
- Projected revenue growth of 5.5% for the next 12 months suggests its momentum from the last three years will persist
Dick's is trading at $123.63 per share, or 10.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
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.