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. That said, here is one stock poised to prove the bears wrong and two where the skepticism is well-placed.
Two Industrials Stocks to Sell:
Alamo (ALG)
One-Month Return: -8.6%
Expanding its markets through acquisitions since its founding, Alamo (NYSE:ALG) designs, manufactures, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use.
Why Does ALG Fall Short?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.2%
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
Alamo’s stock price of $150.66 implies a valuation ratio of 13.8x forward P/E. Check out our free in-depth research report to learn more about why ALG doesn’t pass our bar.
Lindsay (LNN)
One-Month Return: -6.6%
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services.
Why Should You Sell LNN?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Earnings per share have contracted by 11.1% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Diminishing returns on capital suggest its earlier profit pools are drying up
Lindsay is trading at $107.42 per share, or 20.1x forward P/E. If you’re considering LNN for your portfolio, see our FREE research report to learn more.
One Industrials Stock to Buy:
Kratos (KTOS)
One-Month Return: -17.3%
Established with a commitment to supporting national security, Kratos (NASDAQ:KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications.
Why Will KTOS Beat the Market?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 14.9% over the past two years
- Projected revenue growth of 30.6% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings per share have massively outperformed its peers over the last two years, increasing by 18.7% annually
At $40.17 per share, Kratos trades at 44.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.