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 two stocks poised to prove the bears wrong and one facing legitimate challenges.
One Stock to Sell:
Portillo's (PTLO)
One-Month Return: -5.3%
Begun as a Chicago hot dog stand in 1963, Portillo’s (NASDAQ: PTLO) is a casual restaurant chain that serves Chicago-style hot dogs and beef sandwiches as well as fries and shakes.
Why Do We Think PTLO Will Underperform?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Lacking free cash flow margin got worse over the last year as its investment needs accelerated
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Portillo’s stock price of $4.66 implies a valuation ratio of 24.5x forward P/E. If you’re considering PTLO for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Procter & Gamble (PG)
One-Month Return: -2.6%
Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble (NYSE: PG) is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.
Why Could PG Be a Winner?
- Customer loyalty and massive revenue base of $84.93 billion makes it a household name that influences purchasing decisions
- Healthy operating margin of 25.6% shows it’s a well-run company with efficient processes
- Strong free cash flow margin of 18.6% enables it to reinvest or return capital consistently
Procter & Gamble is trading at $143.17 per share, or 20.2x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
PayPal (PYPL)
One-Month Return: -2%
Originally spun off from eBay in 2015 after being acquired by the auction giant in 2002, PayPal (NASDAQ: PYPL) operates a global digital payments platform that enables consumers and merchants to send, receive, and process payments online and in person.
Why Does PYPL Stand Out?
- Share buybacks propelled its annual earnings per share growth to 19.4%, which outperformed its revenue gains over the last two years
- ROE punches in at 20.1%, illustrating management’s expertise in identifying profitable investments
At $59.38 per share, PayPal trades at 10.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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-micro-cap company Tecnoglass (+1,754% 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.
