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.

While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.

Avantor (AVTR)

One-Month Return: -21.3%

With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE:AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.

Why Do We Think Twice About AVTR?

Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Projected sales for the next 12 months are flat and suggest demand will be subdued Adjusted operating profits fell over the last two years as its sales dropped and it struggled to adjust its fixed costs

At $12.73 per share, Avantor trades at 11.8x forward price-to-earnings. Check out our free in-depth research report to learn more about why AVTR doesn’t pass our bar.

Korn Ferry (KFY)

One-Month Return: -9.4%

With clients including 97% of the S&P 100 and operations in 103 offices across 51 countries, Korn Ferry (NYSE:KFY) is a global consulting firm that helps organizations design optimal structures, recruit talent, develop leaders, and create effective compensation strategies.

Why Are We Out on KFY?

Products and services are facing significant end-market challenges during this cycle as sales have declined by 2% annually over the last two years Estimated sales growth of 1.6% for the next 12 months is soft and implies weaker demand Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 8.1% annually, worse than its revenue

Korn Ferry’s stock price of $61.65 implies a valuation ratio of 12.1x forward price-to-earnings. If you’re considering KFY for your portfolio, see our FREE research report to learn more.

Robert Half (RHI)

One-Month Return: -18.3%

With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE:RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.

Story Continues

Why Is RHI Risky?

Sales tumbled by 1.5% annually over the last five years, showing market trends are working against its favor during this cycle Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 11.9% annually, worse than its revenue Eroding returns on capital suggest its historical profit centers are aging

Robert Half is trading at $44.01 per share, or 16.4x forward price-to-earnings. Read our free research report to see why you should think twice about including RHI in your portfolio, it’s free.

Stocks We Like More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.

View Comments