The past year hasn’t been kind to the stocks featured in this article. Each has tumbled to its lowest point in 12 months, leaving investors to decide whether they’re witnessing fire sales or falling knives.
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. That said, here is one stock poised to prove the bears wrong and two where the outlook is warranted.
Two Stocks to Sell:
Enovis (ENOV)
One-Month Return: -11%
With a focus on helping patients regain or maintain their natural motion, Enovis (NYSE: ENOV) develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation.
Why Do We Avoid ENOV?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.3% annually over the last five years
- Negative returns on capital show management lost money while trying to expand the business, and its falling returns suggest its earlier profit pools are drying up
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Enovis is trading at $21.60 per share, or 5.6x forward P/E. Dive into our free research report to see why there are better opportunities than ENOV.
Assured Guaranty (AGO)
One-Month Return: +2.5%
Serving as a financial safety net for over $11 trillion in debt service payments since its founding in 2003, Assured Guaranty (NYSE: AGO) provides credit protection products that guarantee scheduled payments on municipal bonds, infrastructure projects, and structured finance obligations.
Why Are We Out on AGO?
- Net premiums earned contracted by 5.2% annually over the last five years, showing unfavorable market dynamics this cycle
- Projected sales decline of 24% over the next 12 months indicates demand will continue deteriorating
- Sales were less profitable over the last two years as its earnings per share fell by 15.4% annually, worse than its revenue declines
Assured Guaranty’s stock price of $78.12 implies a valuation ratio of 0.6x forward P/B. Check out our free in-depth research report to learn more about why AGO doesn’t pass our bar.
One Stock to Watch:
ResMed (RMD)
One-Month Return: -9.5%
Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE: RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.
Why Does RMD Stand Out?
- Steady constant currency growth over the past two years shows the company can pursue its global ambitions, even in uncertain economic times
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 15.2% outpaced its revenue gains
- Free cash flow margin jumped by 21.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $188.26 per share, ResMed trades at 15.9x forward P/E. Is now a good time to buy? Find out in our full 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 (+1,326% 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.
