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.
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:
Church & Dwight (CHD)
One-Month Return: +2.5%
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 Wary of CHD?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Anticipated sales growth of 3.8% for the next year implies demand will be shaky
- Earnings per share lagged its peers over the last three years as they only grew by 4.7% annually
Church & Dwight is trading at $85.12 per share, or 23x forward P/E. Read our free research report to see why you should think twice about including CHD in your portfolio.
Sherwin-Williams (SHW)
One-Month Return: +0.9%
Widely known for its success in the paint industry, Sherwin-Williams (NYSE: SHW) is a manufacturer of paints, coatings, and related products.
Why Does SHW Give Us Pause?
- 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
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.2% annually
- Free cash flow margin shrank by 2.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $329.84 per share, Sherwin-Williams trades at 26.9x forward P/E. Check out our free in-depth research report to learn more about why SHW doesn’t pass our bar.
One Stock to Watch:
BioMarin Pharmaceutical (BMRN)
One-Month Return: -4.3%
Pioneering treatments for conditions that often had no previous therapeutic options, BioMarin Pharmaceutical (NASDAQ: BMRN) develops and commercializes therapies that address the root causes of rare genetic disorders, particularly those affecting children.
Why Are We Positive On BMRN?
- 15.7% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Share buybacks catapulted its annual earnings per share growth to 16.3%, which outperformed its revenue gains over the last five years
- Free cash flow margin increased by 17 percentage points over the last five years, giving the company more capital to invest or return to shareholders
BioMarin Pharmaceutical’s stock price of $52.14 implies a valuation ratio of 11.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. 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 Kadant (+351% 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.
