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 three stocks facing legitimate challenges and some alternatives worth exploring instead.
Adobe (ADBE)
One-Month Return: -13.2%
Originally named after Adobe Creek that ran behind co-founder John Warnock's house, Adobe (NASDAQ: ADBE) develops software products used for digital content creation, document management, and marketing solutions across desktop, mobile, and cloud platforms.
Why Does ADBE Worry Us?
- Offerings struggled to generate meaningful interest as its average billings growth of 12.6% over the last year did not impress
- Anticipated sales growth of 9.5% for the next year implies demand will be shaky
- Operating margin expanded by 5.3 percentage points over the last year as it scaled and became more efficient
Adobe is trading at $304.92 per share, or 5x forward price-to-sales. Check out our free in-depth research report to learn more about why ADBE doesn’t pass our bar.
Fiverr (FVRR)
One-Month Return: -13.2%
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Why Are We Hesitant About FVRR?
- Active Buyers have declined by 9.4% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive
- Estimated sales growth of 5.4% for the next 12 months implies demand will slow from its three-year trend
- Expensive marketing campaigns hurt its profitability and make us wonder what would happen if it let up on the gas
At $17.34 per share, Fiverr trades at 1.9x forward EV/EBITDA. If you’re considering FVRR for your portfolio, see our FREE research report to learn more.
Harley-Davidson (HOG)
One-Month Return: -1.7%
Founded in 1903, Harley-Davidson (NYSE: HOG) is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.
Why Should You Sell HOG?
- Performance surrounding its motorcycles sold has lagged its peers
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Harley-Davidson’s stock price of $21.01 implies a valuation ratio of 14.6x forward P/E. Dive into our free research report to see why there are better opportunities than HOG.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
