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. That said, here is one stock where you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
Merit Medical Systems (MMSI)
One-Month Return: -5.1%
Founded in 1987 and now offering over 1,700 patented products across global markets, Merit Medical Systems (NASDAQ: MMSI) manufactures and markets specialized medical devices used in minimally invasive procedures for cardiology, radiology, oncology, critical care, and endoscopy.
Why Do We Think Twice About MMSI?
- Modest revenue base of $1.52 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Merit Medical Systems’s stock price of $78.29 implies a valuation ratio of 20.3x forward P/E. Dive into our free research report to see why there are better opportunities than MMSI.
PennyMac Financial Services (PFSI)
One-Month Return: -39.2%
Founded during the 2008 financial crisis to help address the mortgage market meltdown, PennyMac Financial Services (NYSE: PFSI) is a specialty financial services company that originates, services, and manages investments related to residential mortgage loans in the United States.
Why Are We Wary of PFSI?
- Sales tumbled by 10.4% annually over the last five years, showing market trends are working against its favor during this cycle
- Net interest income trends were unexciting over the last five years as its 7.1% annual growth was below the typical banking firm
- Earnings per share have contracted by 10% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
PennyMac Financial Services is trading at $92.45 per share, or 1x forward P/B. Read our free research report to see why you should think twice about including PFSI in your portfolio.
One Stock to Buy:
Progressive (PGR)
One-Month Return: -1.7%
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE: PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
Why Do We Love PGR?
- Net premiums earned surged by 18% annually over the past two years, reflecting strong market share gains this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 72.1% annually, topping its revenue gains
- Capital strength is on track to rise over the next 12 months as its 29.7% projected book value per share growth implies profitability will accelerate from its two-year trend
At $204.55 per share, Progressive trades at 3.2x forward P/B. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
