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 is one stock poised to prove the bears wrong and two facing legitimate challenges.
Two Stocks to Sell:
Marcus & Millichap (MMI)
One-Month Return: +3.6%
Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Why Should You Sell MMI?
- 1% annual revenue growth over the last five years was slower than its consumer discretionary peers
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 5% for the last two years
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Marcus & Millichap’s stock price of $25.92 implies a valuation ratio of 37.9x forward P/E. Dive into our free research report to see why there are better opportunities than MMI.
ABM (ABM)
One-Month Return: -14%
With roots dating back to 1909 as a window washing company, ABM Industries (NYSE: ABM) provides integrated facility management, infrastructure, and mobility solutions across various sectors including commercial, manufacturing, education, and aviation.
Why Are We Wary of ABM?
- 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
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $38.08 per share, ABM trades at 9.6x forward P/E. Check out our free in-depth research report to learn more about why ABM doesn’t pass our bar.
One Stock to Buy:
Erie Indemnity (ERIE)
One-Month Return: -12.9%
Operating under a unique business model dating back to 1925, Erie Indemnity (NASDAQ: ERIE) serves as the attorney-in-fact for Erie Insurance Exchange, managing policy issuance, claims handling, and investment services for this reciprocal insurer.
Why Will ERIE Beat the Market?
- Impressive 11.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Balance sheet strength has increased this cycle as its 14% annual book value per share growth over the last five years was exceptional
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Erie Indemnity is trading at $247.21 per share, or 18.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
