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. Keeping that in mind, here are two stocks poised to prove the bears wrong and one where the skepticism is well-placed.
One Stock to Sell:
Constellation Brands (STZ)
One-Month Return: -12.9%
With a presence in more than 100 countries, Constellation Brands (NYSE: STZ) is a globally renowned producer and marketer of beer, wine, and spirits.
Why Are We Wary of STZ?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Sales are projected to be flat over the next 12 months and imply weak demand
- Earnings growth over the last three years fell short of the peer group average as its EPS only increased by 3.3% annually
Constellation Brands’s stock price of $112.70 implies a valuation ratio of 9.6x forward P/E. Check out our free in-depth research report to learn more about why STZ doesn’t pass our bar.
Two Stocks to Watch:
Lululemon (LULU)
One-Month Return: -20.2%
Originally serving yogis and hockey players, Lululemon (NASDAQ: LULU) is a designer, distributor, and retailer of athletic apparel for men and women.
Why Are We Fans of LULU?
- Aggressive expansion of new stores reflects an offensive push to quickly grow and sell in markets where it has few or no locations
- Unique assortment of products and pricing power result in a best-in-class gross margin of 57%
- Excellent operating margin of 20.3% highlights the efficiency of its business model
Lululemon is trading at $95.87 per share, or 11.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Mueller Water Products (MWA)
One-Month Return: -9.7%
As one of the oldest companies in the water infrastructure industry, Mueller (NYSE: MWA) is a provider of water infrastructure products and flow control systems for various sectors.
Why Are We Positive on MWA?
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 29.2% annually, topping its revenue gains
- Free cash flow margin grew by 12.1 percentage points over the last five years, giving the company more chips to play with
At $21.51 per share, Mueller Water Products trades at 13.8x 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 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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.
