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.
Price charts only tell part of the story. Our team at StockStory evaluates each company's underlying fundamentals to separate temporary setbacks from structural declines. Keeping that in mind, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
TreeHouse Foods (THS)
One-Month Return: -15.3%
Whether it be packaged crackers, broths, or beverages, Treehouse Foods (NYSE: THS) produces a wide range of private-label foods for grocery and food service customers.
Why Do We Pass on THS?
- Falling unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 16.5%
- Low returns on capital reflect management’s struggle to allocate funds effectively
TreeHouse Foods is trading at $17.65 per share, or 8.9x forward P/E. If you’re considering THS for your portfolio, see our FREE research report to learn more.
Integer Holdings (ITGR)
One-Month Return: -6.6%
With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE: ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.
Why Are We Cautious About ITGR?
- Subscale operations are evident in its revenue base of $1.79 billion, meaning it has fewer distribution channels than its larger rivals
- Free cash flow margin dropped by 5.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Low returns on capital reflect management’s struggle to allocate funds effectively
Integer Holdings’s stock price of $106.83 implies a valuation ratio of 15.8x forward P/E. Read our free research report to see why you should think twice about including ITGR in your portfolio.
Kforce (KFRC)
One-Month Return: -29.3%
With nearly 60 years of matching skilled professionals with the right opportunities, Kforce (NYSE: KFRC) is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.
Why Do We Avoid KFRC?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.2% annually over the last two years
- Sales were less profitable over the last two years as its earnings per share fell by 13.8% annually, worse than its revenue declines
- Eroding returns on capital suggest its historical profit centers are aging
At $31.39 per share, Kforce trades at 12.9x forward P/E. To fully understand why you should be careful with KFRC, check out our full research report (it’s free).
High-Quality Stocks for All Market Conditions
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-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
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