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. That said, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.
Pilgrim's Pride (PPC)
One-Month Return: -16.8%
Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ: PPC) produces, processes, and distributes chicken products to retailers and food service customers.
Why Do We Avoid PPC?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.9% over the last three years was below our standards for the consumer staples sector
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 12.8%
- Free cash flow margin dropped by 4.9 percentage points over the last year, implying the company became more capital intensive as competition picked up
Pilgrim's Pride is trading at $36.18 per share, or 8.7x forward P/E. Read our free research report to see why you should think twice about including PPC in your portfolio.
Equitable Holdings (EQH)
One-Month Return: -17.8%
Tracing its roots back to 1859 as one of America's oldest financial institutions, Equitable Holdings (NYSE: EQH) provides retirement planning, asset management, and life insurance products through its two main franchises, Equitable and AllianceBernstein.
Why Do We Pass on EQH?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 2.2% for the last five years
- Costs have risen faster than its revenue over the last two years, causing its pre-tax profit margin to decline by 13.3 percentage point
At $37.22 per share, Equitable Holdings trades at 4.9x forward P/E. Check out our free in-depth research report to learn more about why EQH doesn’t pass our bar.
Fidelity National Financial (FNF)
One-Month Return: -17.3%
Issuing more title insurance policies than any other company in the United States, Fidelity National Financial (NYSE: FNF) provides title insurance and escrow services for real estate transactions while also offering annuities and life insurance through its F&G subsidiary.
Why Does FNF Give Us Pause?
- 1.6% annual declines in net premiums earned for the past five years indicates policy sales struggled this cycle
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.3% annually
- Book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle
Fidelity National Financial’s stock price of $47.50 implies a valuation ratio of 1.3x forward P/B. Dive into our free research report to see why there are better opportunities than FNF.
Stocks We Like More
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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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
