The past year hasn't been kind to the stocks featured in this article. Each has tumbled to their lowest points 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 are three stocks facing legitimate challenges and some alternatives worth exploring instead.
Okta (OKTA)
One-Month Return: -8.8%
Named after the meteorological measurement for cloud cover, Okta (NASDAQ: OKTA) provides cloud-based identity management solutions that help organizations securely connect their employees, partners, and customers to the right applications and services.
Why Does OKTA Worry Us?
- Offerings struggled to generate meaningful interest as its average billings growth of 9.8% over the last year did not impress
- Estimated sales growth of 9% for the next 12 months implies demand will slow from its two-year trend
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 2 percentage points over the next year
At $79.60 per share, Okta trades at 4.6x forward price-to-sales. Check out our free in-depth research report to learn more about why OKTA doesn’t pass our bar.
Upland Software (UPLD)
One-Month Return: -42.9%
Operating under the mantra "land and expand," Upland Software (NASDAQ: UPLD) provides cloud-based applications that help organizations manage projects, workflows, and digital transformation across various business functions.
Why Is UPLD Risky?
- Software offerings aren’t resonating in this new AI paradigm as its revenue declined by 5.8% annually over the last five years
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
Upland Software is trading at $0.56 per share, or 0.1x forward price-to-sales. If you’re considering UPLD for your portfolio, see our FREE research report to learn more.
Pool (POOL)
One-Month Return: -22.4%
Founded in 1993 and headquartered in Louisiana, Pool (NASDAQ: POOL) is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products.
Why Are We Out on POOL?
- Annual revenue growth of 6.1% over the last five years was below our standards for the consumer discretionary sector
- Free cash flow margin is expected to increase by 1.6 percentage points next year, suggesting the company will have more capital to invest or return to shareholders
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Pool’s stock price of $206.30 implies a valuation ratio of 19.2x forward P/E. Dive into our free research report to see why there are better opportunities than POOL.
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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
