The past year hasn’t been kind to the stocks featured in this article. Each has tumbled to its lowest point in 12 months, leaving investors to decide whether they’re witnessing fire sales or falling knives.
While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. That said, here is one stock poised to prove the bears wrong and two facing legitimate challenges.
Two Stocks to Sell:
Chewy (CHWY)
One-Month Return: -22%
Founded by Ryan Cohen, who later became known for his involvement in GameStop, Chewy (NYSE:CHWY) is an online retailer specializing in pet food, supplies, and healthcare services.
Why Does CHWY Fall Short?
- The company has faced growth challenges as its 6.5% annual revenue increases over the last three years fell short of other consumer internet companies
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 7%
- Gross margin of 29.7% is below its competitors, leaving less money to invest in areas like marketing and R&D
Chewy’s stock price of $18.15 implies a valuation ratio of 8.2x forward EV/EBITDA. To fully understand why you should be careful with CHWY, check out our full research report (it’s free).
Bark (BARK)
One-Month Return: -16%
Making a name for itself with the BarkBox, Bark (NYSE:BARK) specializes in subscription-based, personalized pet products.
Why Should You Sell BARK?
- Sales tumbled by 2.5% annually over the last five years, showing consumer trends are working against it
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Bark is trading at $8.15 per share, or 8.7x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than BARK.
One Stock to Buy:
BWX (BWXT)
One-Month Return: -8.6%
Contributing components and materials to the famous Manhattan Project in the 1940s, BWX (NYSE:BWXT) is a manufacturer and service provider of nuclear components and fuel for government and commercial industries.
Why Are We Bullish on BWXT?
- Market share has increased this cycle as its 16.2% annual revenue growth over the last two years was exceptional
- Notable projected revenue growth of 14.3% for the next 12 months hints at market share gains
- Free cash flow margin expanded by 6.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $146.66 per share, BWX trades at 27.2x 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
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.