Looking for our Business Solutions? Click here:CloudQuote APIsContact Us
Home

3 Out-of-Favor Stocks That Fall Short

GETY Cover Image

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. Keeping that in mind, here are three stocks facing legitimate challenges and some alternatives worth exploring instead.

Getty Images (GETY)

One-Month Return: -12.3%

With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images (NYSE:GETY) is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.

Why Are We Wary of GETY?

  1. Sales trends were unexciting over the last two years as its 1.3% annual growth was below the typical business services company
  2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 11.2 percentage points
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

Getty Images’s stock price of $1.32 implies a valuation ratio of 18.2x forward P/E. To fully understand why you should be careful with GETY, check out our full research report (it’s free for active Edge members).

Camping World (CWH)

One-Month Return: -11.1%

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE:CWH) still sells RVs along with boats and general merchandise for outdoor activities.

Why Do We Think CWH Will Underperform?

  1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
  2. Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 58.4% annually, worse than its revenue
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $9.97 per share, Camping World trades at 13.5x forward P/E. If you’re considering CWH for your portfolio, see our FREE research report to learn more.

Clorox (CLX)

One-Month Return: -7.1%

Founded in 1913 with bleach as the sole product offering, Clorox (NYSE:CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.

Why Does CLX Worry Us?

  1. Products aren't resonating with the market as its revenue declined by 1.3% annually over the last three years
  2. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  3. Projected sales decline of 1.3% over the next 12 months indicates demand will continue deteriorating

Clorox is trading at $98.12 per share, or 15.3x forward P/E. Dive into our free research report to see why there are better opportunities than CLX.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.