3 Out-of-Favor Stocks We Find Risky

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.

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 are three stocks facing legitimate challenges and some alternatives worth exploring instead.

Adobe (ADBE)

One-Month Return: -13.2%

Originally named after Adobe Creek that ran behind co-founder John Warnock's house, Adobe (NASDAQ:ADBE) develops software products used for digital content creation, document management, and marketing solutions across desktop, mobile, and cloud platforms.

Why Does ADBE Worry Us?

1. Offerings struggled to generate meaningful interest as its average billings growth of 12.6% over the last year did not impress
2. Anticipated sales growth of 9.5% for the next year implies demand will be shaky
3. Operating margin expanded by 5.3 percentage points over the last year as it scaled and became more efficient

Adobe is trading at $304.92 per share, or 5x forward price-to-sales. Check out our free in-depth research report to learn more about why ADBE doesn’t pass our bar.

Fiverr (FVRR)

One-Month Return: -13.2%

Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services.

Why Are We Hesitant About FVRR?

1. Active Buyers have declined by 9.4% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive
2. Estimated sales growth of 5.4% for the next 12 months implies demand will slow from its three-year trend
3. Expensive marketing campaigns hurt its profitability and make us wonder what would happen if it let up on the gas

At $17.34 per share, Fiverr trades at 1.9x forward EV/EBITDA. If you’re considering FVRR for your portfolio, see our FREE research report to learn more.

Harley-Davidson (HOG)

One-Month Return: -1.7%

Founded in 1903, Harley-Davidson (NYSE:HOG) is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.

Why Should You Sell HOG?

1. Performance surrounding its motorcycles sold has lagged its peers
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Harley-Davidson’s stock price of $21.01 implies a valuation ratio of 14.6x forward P/E. Dive into our free research report to see why there are better opportunities than HOG.

High-Quality Stocks for All Market Conditions

Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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.