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.
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 facing legitimate challenges.
Two Stocks to Sell:
Itron (ITRI)
One-Month Return: -12.9%
Founded by a small group of engineers who wanted to build a more efficient way to read utility meters, Itron (NASDAQ: ITRI) offers energy and water management products for the utility industry, municipalities, and industrial customers.
Why Does ITRI Worry Us?
- Annual revenue growth of 1.7% over the last five years was below our standards for the industrials sector
- Estimated sales growth of 2.1% for the next 12 months implies demand will slow from its two-year trend
- Underwhelming 6.6% return on capital reflects management’s difficulties in finding profitable growth opportunities
Itron’s stock price of $82.88 implies a valuation ratio of 14.2x forward P/E. To fully understand why you should be careful with ITRI, check out our full research report (it’s free).
Ellington Financial (EFC)
One-Month Return: -6.1%
Operating under the guidance of Ellington Management Group, a respected name in structured credit markets, Ellington Financial (NYSE: EFC) acquires and manages a diverse portfolio of mortgage-related, consumer-related, and other financial assets to generate returns for investors.
Why Is EFC Risky?
- Incremental sales over the last five years were less profitable as its 2.7% annual earnings per share growth lagged its revenue gains
- Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 5.6% annually over the last five years
- ROE of 6.6% reflects management’s challenges in identifying attractive investment opportunities
Ellington Financial is trading at $11.71 per share, or 0.8x forward P/B. If you’re considering EFC for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Upstart (UPST)
One-Month Return: -14.9%
Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart (NASDAQ: UPST) is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.
Why Does UPST Stand Out?
- Loan originations on its platform are soaring as they averaged 51.6% growth over the last year, enabling the company to collect more fees and expand into new markets like credit cards.
- Expected revenue growth of 35.6% for the next year suggests its market share will rise
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
At $24.08 per share, Upstart trades at 2x forward price-to-sales. 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 meeting 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.
