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.
While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. That said, here are two stocks where you should be greedy instead of fearful and one facing legitimate challenges.
One Stock to Sell:
Clarus (CLAR)
One-Month Return: -0.9%
Initially a financial services business, Clarus (NASDAQ: CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.
Why Are We Out on CLAR?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Clarus is trading at $2.70 per share, or 0.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than CLAR.
Two Stocks to Watch:
Cadre (CDRE)
One-Month Return: -8%
Originally known as Safariland, Cadre (NYSE: CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Why Does CDRE Stand Out?
- Annual revenue growth of 11.8% over the last two years was superb and indicates its market share increased during this cycle
- Market share is on track to rise over the next 12 months as its 17.6% projected revenue growth implies demand will accelerate from its two-year trend
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
At $30.44 per share, Cadre trades at 1.8x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
iRhythm (IRTC)
One-Month Return: -6.2%
Pioneering the shift from bulky, short-term heart monitors to sleek, wire-free patches, iRhythm Technologies (NASDAQ: IRTC) provides wearable cardiac monitoring devices and AI-powered analysis services that help physicians detect and diagnose heart rhythm disorders.
Why Do We Watch IRTC?
- Annual revenue growth of 23.9% over the last two years was superb and indicates its market share increased during this cycle
- Additional sales over the last five years increased its profitability as the 27.5% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin is now positive, showing the company has crossed a key inflection point
iRhythm’s stock price of $116.71 implies a valuation ratio of 329.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
