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. Keeping that in mind, here are two stocks where you should be greedy instead of fearful and one where the skepticism is well-placed.
One Stock to Sell:
Lennar (LEN)
One-Month Return: -7.3%
One of the largest homebuilders in America, Lennar (NYSE: LEN) is known for constructing affordable, move-up, and retirement homes across a range of markets and communities.
Why Should You Sell LEN?
- Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 11.4% declines over the past two years
- 7.5 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Eroding returns on capital suggest its historical profit centers are aging
Lennar’s stock price of $88.94 implies a valuation ratio of 14.4x forward P/E. If you’re considering LEN for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Atlassian (TEAM)
One-Month Return: -12.5%
Started by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ: TEAM) provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.
Why Are We Fans of TEAM?
- Impressive 21.6% annual revenue growth over the last two years indicates it’s winning market share
- Software is difficult to replicate at scale and results in a top-tier gross margin of 84.1%
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Atlassian is trading at $66.64 per share, or 2.3x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
The Trade Desk (TTD)
One-Month Return: -17.3%
Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ: TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.
Why Are We Backing TTD?
- Annual revenue growth of 22% over the last two years was superb and indicates its market share is rising
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Excellent operating margin of 20.3% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last year
At $22.40 per share, The Trade Desk trades at 3.1x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
