Rock-bottom prices don't always mean rock-bottom businesses. The stocks we're examining today have all touched their 52-week lows, creating a classic investor's dilemma: bargain opportunity or value trap?
At StockStory, we dig beneath the surface of price movements to uncover whether a company's fundamentals justify its current valuation or suggest hidden potential. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
Upland Software (UPLD)
One-Month Return: -9.7%
Operating under the mantra "land and expand," Upland Software (NASDAQ: UPLD) provides cloud-based applications that help organizations manage projects, workflows, and digital transformation across various business functions.
Why Is UPLD Not Exciting?
- Annual sales declines of 3.4% for the past five years show its products and services struggled to connect with the market
- Projected sales decline of 11.1% over the next 12 months indicates demand will continue deteriorating
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Upland Software’s stock price of $1.64 implies a valuation ratio of 0.2x forward price-to-sales. Read our free research report to see why you should think twice about including UPLD in your portfolio.
Chemed (CHE)
One-Month Return: -5.3%
With a unique business model combining end-of-life care and household services, Chemed (NYSE: CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services.
Why Does CHE Give Us Pause?
- Underwhelming billable days over the past two years suggest it might have to lower prices to accelerate growth
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 4.3 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
At $412.70 per share, Chemed trades at 16.8x forward P/E. Check out our free in-depth research report to learn more about why CHE doesn’t pass our bar.
MarketAxess (MKTX)
One-Month Return: -2.4%
Pioneering the shift from phone-based to electronic bond trading since 2000, MarketAxess (NASDAQ: MKTX) operates electronic trading platforms that enable institutional investors and broker-dealers to efficiently trade fixed-income securities like corporate and government bonds.
Why Does MKTX Fall Short?
- Annual revenue growth of 5.3% over the last five years was below our standards for the financials sector
- Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew
MarketAxess is trading at $165.10 per share, or 21.3x forward P/E. To fully understand why you should be careful with MKTX, check out our full research report (it’s free for active Edge members).
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 6 Stocks for this week. 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 Exlservice (+354% 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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