Rock-bottom prices don't always mean rock-bottom businesses. The stocks we're examining today have all touched their 52-week lows, creating a classic investor's dilemma: bargain opportunity or value trap?
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. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
Caleres (CAL)
One-Month Return: -5.1%
The owner of Dr. Scholl's, Caleres (NYSE:CAL) is a footwear company offering a range of styles.
Why Do We Think CAL Will Underperform?
- Annual revenue declines of 3.8% over the last two years indicate problems with its market positioning
- Projected sales for the next 12 months are flat and suggest demand will be subdued
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Caleres’s stock price of $13.67 implies a valuation ratio of 4.3x forward P/E. To fully understand why you should be careful with CAL, check out our full research report (it’s free).
Pursuit (PRSU)
One-Month Return: -6.3%
With attractions ranging from glacier tours in the Canadian Rockies to an oceanfront geothermal lagoon in Iceland, Pursuit Attractions and Hospitality (NYSE:PRSU) operates iconic travel experiences, experiential marketing services, and exhibition management across North America and Europe.
Why Does PRSU Worry Us?
- Annual sales declines of 37% for the past five years show its products and services struggled to connect with the market
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- Push for growth has led to negative returns on capital, signaling value destruction
Pursuit is trading at $27.86 per share, or 7.7x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why PRSU doesn’t pass our bar.
Exponent (EXPO)
One-Month Return: +2.6%
With a team of over 800 consultants holding advanced degrees in 90+ technical disciplines, Exponent (NASDAQ:EXPO) is a science and engineering consulting firm that investigates complex problems and provides expert analysis for clients across various industries.
Why Does EXPO Fall Short?
- 4.5% annual revenue growth over the last two years was slower than its business services peers
- Subscale operations are evident in its revenue base of $518.7 million, meaning it has fewer distribution channels than its larger rivals
- Waning returns on capital imply its previous profit engines are losing steam
At $77.16 per share, Exponent trades at 36.9x forward P/E. Dive into our free research report to see why there are better opportunities than EXPO.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free.