The past year hasn't been kind to the stocks featured in this article. Each has tumbled to their lowest points in 12 months, leaving investors to decide whether they're witnessing fire sales or falling knives.
While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
Church & Dwight (CHD)
One-Month Return: -3.1%
Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE:CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.
Why Are We Hesitant About CHD?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Projected sales growth of 3.5% for the next 12 months suggests sluggish demand
- Efficiency has decreased over the last year as its operating margin fell by 6.7 percentage points
Church & Dwight is trading at $92.75 per share, or 25.8x forward P/E. To fully understand why you should be careful with CHD, check out our full research report (it’s free).
U-Haul (UHAL)
One-Month Return: -6.2%
Founded by a husband and wife duo, U-Haul (NYSE:UHAL) is a provider of rental trucks and storage facilities.
Why Should You Dump UHAL?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
U-Haul’s stock price of $58.42 implies a valuation ratio of 1.9x trailing 12-month price-to-sales. If you’re considering UHAL for your portfolio, see our FREE research report to learn more.
PennyMac Mortgage Investment Trust (PMT)
One-Month Return: +0.3%
Operating as a real estate investment trust since 2009 to maintain tax advantages, PennyMac Mortgage Investment Trust (NYSE:PMT) is a specialty finance company that invests in mortgage-related assets and operates a correspondent lending business.
Why Are We Wary of PMT?
- Annual net interest income growth of 3.5% over the last five years was below our standards for the banking sector
- Net interest income is projected to tank by 145% over the next 12 months as demand evaporates
- Annual tangible book value per share declines of 4.8% for the past five years show its capital management struggled during this cycle
At $12.25 per share, PennyMac Mortgage Investment Trust trades at 0.8x forward P/B. Check out our free in-depth research report to learn more about why PMT doesn’t pass our bar.
Stocks We Like More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out 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 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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