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?
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 is one stock where you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
Molson Coors (TAP)
One-Month Return: -12.3%
Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE:TAP) is a global brewing giant with a rich history dating back more than two centuries.
Why Are We Wary of TAP?
- Falling unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Underwhelming 3.8% return on capital reflects management’s difficulties in finding profitable growth opportunities
Molson Coors’s stock price of $45.24 implies a valuation ratio of 7.4x forward P/E. If you’re considering TAP for your portfolio, see our FREE research report to learn more.
Constellation Brands (STZ)
One-Month Return: -18%
With a presence in more than 100 countries, Constellation Brands (NYSE:STZ) is a globally renowned producer and marketer of beer, wine, and spirits.
Why Does STZ Worry Us?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Projected sales decline of 10.8% for the next 12 months points to a tough demand environment ahead
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 31.8 percentage points
At $134.24 per share, Constellation Brands trades at 10.4x forward P/E. To fully understand why you should be careful with STZ, check out our full research report (it’s free).
One Stock to Watch:
Intuitive Surgical (ISRG)
One-Month Return: -4.6%
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ:ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Is ISRG Interesting?
- Average unit sales growth of 11.4% over the past two years reflects steady demand for its products
- Estimated revenue growth of 14.2% for the next 12 months implies its momentum over the last two years will continue
- Earnings per share have massively outperformed its peers over the last five years, increasing by 17.7% annually
Intuitive Surgical is trading at $447 per share, or 53.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even 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 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 Exlservice (+354% 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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