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. Keeping that in mind, here is one stock where the poor sentiment is creating a buying opportunity and two facing legitimate challenges.
Two Stocks to Sell:
RE/MAX (RMAX)
One-Month Return: -14.7%
Short for Real Estate Maximums, RE/MAX (NYSE: RMAX) operates a real estate franchise network spanning over 100 countries and territories.
Why Are We Out on RMAX?
- Number of agents 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 7.1% annually while its revenue grew
- Projected 5.5 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
RE/MAX is trading at $6.66 per share, or 4.8x forward P/E. Dive into our free research report to see why there are better opportunities than RMAX.
Root (ROOT)
One-Month Return: -17.3%
Pioneering a data-driven approach that rewards good driving habits, Root (NASDAQ: ROOT) is a technology-driven auto insurance company that uses mobile apps to acquire customers and data science to price policies based on individual driving behavior.
Why Does ROOT Fall Short?
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 24.6% annually over the last five years
- Negative return on equity shows that some of its growth strategies have backfired
Root’s stock price of $57.75 implies a valuation ratio of 0.5x forward P/B. To fully understand why you should be careful with ROOT, check out our full research report (it’s free).
One Stock to Buy:
Progressive (PGR)
One-Month Return: +2%
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 expanded by 18% annually over the last two years, demonstrating exceptional market penetration this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 72.1% over the last two years outstripped its revenue performance
- 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 $212.25 per share, Progressive trades at 3.2x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
