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. Keeping that in mind, here are two stocks where the poor sentiment is creating a buying opportunity and one where the skepticism is well-placed.
One Stock to Sell:
Surgery Partners (SGRY)
One-Month Return: -7.7%
With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ:SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals.
Why Are We Hesitant About SGRY?
- Weak unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Surgery Partners’s stock price of $15.03 implies a valuation ratio of 22.5x forward P/E. Read our free research report to see why you should think twice about including SGRY in your portfolio.
Two Stocks to Watch:
Guidewire Software (GWRE)
One-Month Return: -28.1%
With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE:GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics.
Why Does GWRE Stand Out?
- Average billings growth of 20.7% over the last year enhances its liquidity and shows there is steady demand for its products
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Free cash flow generation is better than most peers and allows it to explore new investment opportunities
At $130.06 per share, Guidewire Software trades at 7.9x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
ADP (ADP)
One-Month Return: -17.6%
Processing one out of every six paychecks in the United States, ADP (NASDAQ:ADP) provides cloud-based human capital management solutions that help businesses manage payroll, benefits, talent acquisition, and HR administration.
Why Is ADP a Top Pick?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 7.8% annual sales growth over the last five years
- ADP is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety
- Returns on capital are growing as management capitalizes on its market opportunities
ADP is trading at $216.51 per share, or 19.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.