The past year hasn’t been kind to the stocks featured in this article. Each has tumbled to its lowest point in 12 months, leaving investors to decide whether they’re witnessing fire sales or falling knives.

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. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two facing legitimate challenges.

Two Stocks to Sell:

USANA (USNA)

One-Month Return: -42.5%

Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE: USNA) manufactures and sells nutritional, personal care, and skincare products.

Why Are We Cautious About USNA?

1. Sales tumbled by 1.2% annually over the last three years, showing consumer trends are working against it
2. Modest revenue base of $913.4 million gives it less fixed cost leverage and fewer distribution channels than larger companies
3. Sales were less profitable over the last three years as its earnings per share fell by 32.9% annually, worse than its revenue declines

USANA’s stock price of $12.88 implies a valuation ratio of 13.1x forward P/E. To fully understand why you should be careful with USNA, check out our full research report (it’s free).

PennyMac Financial Services (PFSI)

One-Month Return: -8.7%

Founded during the 2008 financial crisis to help address the mortgage market meltdown, PennyMac Financial Services (NYSE: PFSI) is a specialty financial services company that originates, services, and manages investments related to residential mortgage loans in the United States.

Why Do We Pass on PFSI?

1. Sales tumbled by 11.8% annually over the last five years, showing market trends are working against it during this cycle
2. Loans are facing significant end-market challenges during this cycle as net interest income has declined by 27.5% annually over the last five years
3. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable

PennyMac Financial Services is trading at $76.31 per share, or 0.9x forward P/B. Check out our free in-depth research report to learn more about why PFSI doesn’t pass our bar.

One Stock to Buy:

Wingstop (WING)

One-Month Return: -17.9%

The passion project of two chicken wing aficionados in Texas, Wingstop (NASDAQ: WING) is a popular fast-food chain known for its flavorful and crispy chicken wings offered in a variety of sauces and seasonings.

Why Will WING Outperform?

1. Bold push to open new restaurants demonstrates an ambitious strategy to establish itself in underpenetrated territories
2. Highly-profitable franchise model results in strong unit economics and a best-in-class gross margin of 54.1%
3. Free cash flow margin grew by 9.5 percentage points over the last year, giving the company more chips to play with

At $115.90 per share, Wingstop trades at 26.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.