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3 Out-of-Favor Stocks We Steer Clear Of

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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?

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

WillScot Mobile Mini (WSC)

One-Month Return: -15.4%

Originally focusing on mobile offices for construction sites, WillScot (NASDAQ:WSC) provides ready-to-use temporary spaces, largely for longer-term lease.

Why Does WSC Worry Us?

  1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
  2. Forecasted revenue decline of 4.8% for the upcoming 12 months implies demand will fall off a cliff
  3. Earnings per share have dipped by 12.5% annually over the past two years, which is concerning because stock prices follow EPS over the long term

WillScot Mobile Mini’s stock price of $19.26 implies a valuation ratio of 16.1x forward P/E. Read our free research report to see why you should think twice about including WSC in your portfolio.

Rush Enterprises (RUSHA)

One-Month Return: +2.6%

Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.

Why Do We Steer Clear of RUSHA?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
  2. Sales are projected to tank by 3.6% over the next 12 months as demand evaporates further
  3. Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 12% annually

At $51.89 per share, Rush Enterprises trades at 15.7x forward P/E. Check out our free in-depth research report to learn more about why RUSHA doesn’t pass our bar.

Strategy (MSTR)

One-Month Return: -42.7%

Once a traditional business intelligence software provider, Strategy (NASDAQ:MSTR) develops AI-powered enterprise analytics software while also functioning as a major corporate holder of Bitcoin cryptocurrency.

Why Should You Sell MSTR?

  1. MicroStrategy’s core analytics software has been eclipsed by its all-in Bitcoin strategy, leaving product innovation and enterprise deals starved for attention
  2. The company’s debt-financed Bitcoin buying ties shareholder fortunes to crypto swings and interest rates, amplifying downside risk and uncertainty
  3. On the bright side, its vast Bitcoin treasury gives Executive Chairman Michael Saylor a unique springboard to capture crypto upside and court investors seeking leveraged exposure to digital assets

Strategy is trading at $169.46 per share, or 114.6x forward price-to-sales. Read our free research report to see why you should think twice about including MSTR in your portfolio.

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 5 Strong Momentum 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 Comfort Systems (+782% 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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