3 Out-of-Favor Stocks with Questionable Fundamentals

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 where the skepticism is well-placed and some better opportunities to consider.

Golden Entertainment (GDEN)

One-Month Return: -9.3%

Founded in 2001, Golden Entertainment GDEN is a gaming company operating casinos, taverns, and distributed gaming platforms.

Why Do We Think Twice About GDEN?

• Products and services aren't resonating with the market as its revenue declined by 3.3% annually over the last five years
• Projected sales for the next 12 months are flat and suggest demand will be subdued
• Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 3.3% for the last two years

Golden Entertainment’s stock price of $22.18 implies a valuation ratio of 30.4x forward P/E. Read our free research report to see why you should think twice about including GDEN in your portfolio.

Mister Car Wash (MCW)

One-Month Return: -7.3%

Formerly known as Hotshine Holdings, Mister Car Wash (NYSE:MCW) offers car washes across the United States through its conveyorized service.

Why Do We Steer Clear of MCW?

• Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
• Cash burn makes us question whether it can achieve sustainable long-term growth
• Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $4.93 per share, Mister Car Wash trades at 10.7x forward P/E. To fully understand why you should be careful with MCW, check out our full research report (it’s free for active Edge members).

Graphic Packaging Holding (GPK)

One-Month Return: -13.3%

Founded in 1991, Graphic Packaging GPK is a provider of paper-based packaging solutions for a wide range of products.

Why Should You Dump GPK?

• Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
• Earnings per share have dipped by 10.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
• Free cash flow margin shrank by 8.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Graphic Packaging Holding is trading at $17.52 per share, or 8.4x forward P/E. Dive into our free research report to see why there are better opportunities than GPK.

Stocks We Like More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 Tecnoglass (+1,754% five-year return).

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.