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.
Cracker Barrel (CBRL)
One-Month Return: -9.2%
Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ: CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.
Why Should You Dump CBRL?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Earnings per share fell by 22.6% annually over the last six years while its revenue grew, showing its incremental sales were much less profitable
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Cracker Barrel is trading at $25.99 per share, or 16.7x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why CBRL doesn’t pass our bar.
ChargePoint (CHPT)
One-Month Return: -6.9%
The most prominent EV charging company during the COVID bull market, ChargePoint (NYSE: CHPT) is a provider of electric vehicle charging technology solutions in North America and Europe.
Why Are We Wary of CHPT?
- Annual sales declines of 13.8% for the past two years show its products and services struggled to connect with the market during this cycle
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- EBITDA losses may force it to accept punitive lending terms or high-cost debt
At $7.10 per share, ChargePoint trades at 0.4x forward price-to-sales. To fully understand why you should be careful with CHPT, check out our full research report (it’s free for active Edge members).
CDW (CDW)
One-Month Return: -2.3%
Serving as a crucial bridge between technology manufacturers and end users since 1984, CDW (NASDAQ: CDW) is a multi-brand provider of information technology solutions that helps businesses and public sector organizations select, implement, and manage hardware, software, and IT services.
Why Does CDW Worry Us?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Anticipated sales growth of 2% for the next year implies demand will be shaky
- Earnings per share were flat over the last two years and fell short of the peer group average
CDW’s stock price of $139.79 implies a valuation ratio of 13.6x forward P/E. Dive into our free research report to see why there are better opportunities than CDW.
Stocks We Like More
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 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.
