3 Out-of-Favor Stocks We Keep Off Our Radar

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. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider.

Flowers Foods (FLO)

One-Month Return: -8.5%

With Wonder Bread as its premier brand, Flower Foods (NYSE:FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes.

Why Does FLO Fall Short?

1. Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
2. Subpar operating margin of 5.6% constrains its ability to invest in process improvements or effectively respond to new competitive threats
3. Earnings per share have contracted by 1.4% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

Flowers Foods’s stock price of $14.72 implies a valuation ratio of 13.4x forward P/E. Dive into our free research report to see why there are better opportunities than FLO.

Smith & Wesson (SWBI)

One-Month Return: +2.2%

With a history dating back to 1852, Smith & Wesson (NASDAQ:SWBI) is a firearms manufacturer known for its handguns and rifles.

Why Is SWBI Risky?

1. Products and services aren't resonating with the market as its revenue declined by 6.6% annually over the last five years
2. Negative free cash flow raises questions about the return timeline for its investments
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $8.25 per share, Smith & Wesson trades at 6.8x forward EV-to-EBITDA. To fully understand why you should be careful with SWBI, check out our full research report (it’s free).

Haemonetics (HAE)

One-Month Return: -28.9%

With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE:HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.

Why Does HAE Give Us Pause?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Smaller revenue base of $1.35 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Estimated sales decline of 2.9% for the next 12 months implies a challenging demand environment

Haemonetics is trading at $54.08 per share, or 10.8x forward P/E. If you’re considering HAE for your portfolio, see our FREE research report to learn more.

Stocks We Like More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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 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-micro-cap company Tecnoglass (+1,754% 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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