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. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.

MGP Ingredients (MGPI)

One-Month Return: -4.6%

Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ: MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry

Why Do We Steer Clear of MGPI?

1. Annual revenue declines of 14.6% over the last three years indicate problems with its market positioning
2. Sales were less profitable over the last three years as its earnings per share fell by 22% annually, worse than its revenue declines
3. 9.5 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position

MGP Ingredients’s stock price of $16.51 implies a valuation ratio of 10.1x forward P/E. If you’re considering MGPI for your portfolio, see our FREE research report to learn more.

Janus (JBI)

One-Month Return: -12.8%

Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE: JBI) is a provider of easily accessible self-storage solutions.

Why Are We Out on JBI?

1. Annual sales declines of 7.2% for the past two years show its products and services struggled to connect with the market during this cycle
2. Earnings per share have contracted by 5.3% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Janus is trading at $4.73 per share, or 6.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including JBI in your portfolio.

Arbor Realty Trust (ABR)

One-Month Return: -3.5%

With roots dating back to 2003 and a focus on the stability of multifamily housing, Arbor Realty Trust (NYSE: ABR) is a specialized lender that provides financing solutions for multifamily and commercial real estate while also originating and servicing government-backed mortgage loans.

Why Is ABR Risky?

1. Net interest income was flat over the last five years, indicating it’s failed to expand this cycle
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 6.2% annually over the last two years

At $4.98 per share, Arbor Realty Trust trades at 0.5x forward P/B. Dive into our free research report to see why there are better opportunities than ABR.

Stocks We Like 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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.