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?
At StockStory, we dig beneath the surface of price movements to uncover whether a company's fundamentals justify its current valuation or suggest hidden potential. Keeping that in mind, here are two stocks poised to prove the bears wrong and one where the outlook is warranted.
One Stock to Sell:
Offerpad (OPAD)
One-Month Return: +2.4%
Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE: OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.
Why Should You Dump OPAD?
- Performance surrounding its homes sold has lagged its peers
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 15.9 percentage points over the next year
- EBITDA losses may force it to accept punitive lending terms or high-cost debt
Offerpad’s stock price of $0.80 implies a valuation ratio of 0.1x forward price-to-sales. If you’re considering OPAD for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
BellRing Brands (BRBR)
One-Month Return: -2.3%
Spun out of Post Holdings in 2019, Bellring Brands (NYSE: BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.
Why Does BRBR Stand Out?
- Unit sales were phenomenal over the past two years, showing demand is robust and retailers can’t stock enough of its products
- Free cash flow margin grew by 4.7 percentage points over the last year, giving the company more chips to play with
- Industry-leading 45.3% return on capital demonstrates management’s skill in finding high-return investments, and its rising returns show it’s making even more lucrative bets
At $17.22 per share, BellRing Brands trades at 8.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Ares (ARES)
One-Month Return: -24%
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE: ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
Why Is ARES a Top Pick?
- Annual revenue growth of 21.4% over the past five years was outstanding, reflecting market share gains this cycle
- Earnings growth has easily exceeded the peer group average over the last five years as its EPS has compounded at 20.7% annually
Ares is trading at $101.82 per share, or 16.8x 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
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 for 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
