1 Oversold Stock Primed to Rebound and 2 We Avoid

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TTD 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. That said, here is one stock where you should be greedy instead of fearful and two where the outlook is warranted.

Two Stocks to Sell:

The Trade Desk (TTD)

One-Month Return: -11.3%

Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ: TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.

Why Does TTD Worry Us?

  1. Customers had second thoughts about committing to its platform over the last year as its average billings growth of 12.3% underwhelmed
  2. Sales are projected to tank by 14.9% over the next 12 months as demand evaporates
  3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 8 percentage points

At $12.32 per share, The Trade Desk trades at 2.3x forward price-to-sales. To fully understand why you should be careful with TTD, check out our full research report (it’s free).

TETRA Technologies (TTI)

One-Month Return: -13.9%

Operating across six continents with approximately 40,000 acres of mineral-rich brine leases in Arkansas, TETRA Technologies (NYSE: TTI) provides well completion fluids and water management services to oil and gas operators.

Why Is TTI Risky?

  1. Annual sales declines of 3.4% for the past ten years show its products and services struggled to connect with the market during this cycle
  2. Subscale operations are evident in its revenue base of $641.8 million, meaning it has fewer distribution channels than its larger rivals
  3. Gross margin of 29.3% reflects its high production costs and unfavorable asset base

TETRA Technologies is trading at $5.25 per share, or 20.5x forward P/E. Check out our free in-depth research report to learn more about why TTI doesn’t pass our bar.

One Stock to Watch:

Lennox (LII)

One-Month Return: -2.1%

Based in Texas and founded over a century ago, Lennox (NYSE: LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.

Why Does LII Stand Out?

  1. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 17.7%, and it turbocharged its profits by achieving some fixed cost leverage
  2. Free cash flow margin expanded by 8.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
  3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Lennox’s stock price of $356.05 implies a valuation ratio of 14.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

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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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

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