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 you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
Sprout Social (SPT)
One-Month Return: -4.6%
Born from the recognition that businesses needed a centralized way to handle their growing social media presence, Sprout Social (NASDAQ: SPT) provides a comprehensive software platform that helps businesses manage, analyze, and optimize their presence across various social media networks.
Why Does SPT Fall Short?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 11.1% underwhelmed
- Estimated sales growth of 11% for the next 12 months implies demand will slow from its two-year trend
- Rapid expansion strategy came at the expense of operating margin profitability
Sprout Social’s stock price of $9.91 implies a valuation ratio of 1.2x forward price-to-sales. If you’re considering SPT for your portfolio, see our FREE research report to learn more.
CoreCivic (CXW)
One-Month Return: -4.2%
Originally founded in 1983 as the first private prison company in the United States, CoreCivic (NYSE: CXW) operates correctional facilities, detention centers, and residential reentry programs for government agencies across the United States.
Why Are We Out on CXW?
- Demand for its offerings was relatively low as its number of average available beds has underwhelmed
- Earnings growth over the last four years fell short of the peer group average as its EPS only increased by 1.9% annually
- Free cash flow margin shrank by 9.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
CoreCivic is trading at $18.05 per share, or 14x forward P/E. Dive into our free research report to see why there are better opportunities than CXW.
One Stock to Buy:
Doximity (DOCS)
One-Month Return: -23.5%
With over 80% of U.S. physicians as members of its digital community, Doximity (NYSE: DOCS) operates a digital platform that enables physicians and other healthcare professionals to collaborate, stay current with medical news, manage their careers, and conduct virtual patient visits.
Why Is DOCS a Top Pick?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 20.1% over the last year
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Robust free cash flow margin of 50.2% gives it many options for capital deployment
At $51.25 per share, Doximity trades at 15.3x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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