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.
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. That said, here is one stock where you should be greedy instead of fearful and two facing legitimate challenges.
Two Stocks to Sell:
Installed Building Products (IBP)
One-Month Return: -18.2%
Founded in 1977, Installed Building Products (NYSE: IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction.
Why Is IBP Not Exciting?
- 1.8% annual revenue growth over the last two years was slower than its industrials peers
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.2%
- Earnings per share lagged its peers over the last two years as they only grew by 1.4% annually
At $192.61 per share, Installed Building Products trades at 17.6x forward P/E. Check out our free in-depth research report to learn more about why IBP doesn’t pass our bar.
Ally Financial (ALLY)
One-Month Return: -11.2%
Born from the former GMAC (General Motors Acceptance Corporation) and rebranded in 2010, Ally Financial (NYSE: ALLY) operates a digital-first bank offering auto financing, insurance, mortgage lending, and investment services to consumers and commercial clients.
Why Do We Avoid ALLY?
- 2.8% annual revenue growth over the last five years was slower than its financials peers
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 8.9% annually while its revenue grew
- High net-debt-to-EBITDA ratio of 10× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Ally Financial’s stock price of $37.90 implies a valuation ratio of 6.4x forward P/E. To fully understand why you should be careful with ALLY, check out our full research report (it’s free).
One Stock to Buy:
SoFi (SOFI)
One-Month Return: -11.3%
Starting as a student loan refinancing company founded by Stanford business school students in 2011, SoFi Technologies (NASDAQ: SOFI) operates a digital financial platform offering lending, banking, investing, and other financial services to help members borrow, save, spend, invest, and protect their money.
Why Is SOFI a Good Business?
- Annual revenue growth of 35.9% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 183% annually, topping its revenue gains
SoFi is trading at $15.83 per share, or 21.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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.
