
The past year hasn't been kind to the stocks featured in this article. Each has tumbled to their lowest points in 12 months, leaving investors to decide whether they're witnessing fire sales or falling knives.
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 where the outlook is warranted.
Two Stocks to Sell:
Cable One (CABO)
One-Month Return: -57.3%
Founded in 1986, Cable One (NYSE: CABO) provides high-speed internet, cable television, and telephone services, primarily in smaller markets across the United States.
Why Do We Steer Clear of CABO?
- Number of residential data subscribers has disappointed over the past two years, indicating weak demand for its offerings
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 26% annually while its revenue grew
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Cable One is trading at $49.51 per share, or 0.2x forward price-to-sales. To fully understand why you should be careful with CABO, check out our full research report (it’s free).
Vontier (VNT)
One-Month Return: -24.7%
A spin-off of a spin-off, Vontier (NYSE: VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors.
Why Do We Pass on VNT?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Sales are projected to tank by 2.3% over the next 12 months as demand evaporates further
- Earnings per share lagged its peers over the last five years as they only grew by 1.2% annually
Vontier’s stock price of $28.14 implies a valuation ratio of 8.3x forward P/E. Read our free research report to see why you should think twice about including VNT in your portfolio.
One Stock to Buy:
Lululemon (LULU)
One-Month Return: -28.6%
Originally serving yogis and hockey players, Lululemon (NASDAQ: LULU) is a designer, distributor, and retailer of athletic apparel for men and women.
Why Is LULU a Good Business?
- Comparable store sales rose by 2.6% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Collection of products is difficult to replicate at scale and leads to a best-in-class gross margin of 57.9%
- Highly efficient business model is illustrated by its impressive 21.7% operating margin
At $119.09 per share, Lululemon trades at 9.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.