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 two stocks poised to prove the bears wrong and one facing legitimate challenges.
One-Month Return: -2.3%
Starting with the widely-used Nessus vulnerability scanner first released in 1998, Tenable (NASDAQ:TENB) provides exposure management solutions that help organizations identify, assess, and prioritize cybersecurity vulnerabilities across their IT infrastructure and cloud environments.
Why Does TENB Give Us Pause?
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Products, pricing, or go-to-market strategy may need some adjustments as its 10.4% average billings growth over the last year was weak
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Estimated sales growth of 7.1% for the next 12 months implies demand will slow from its two-year trend
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Operating margin improvement of 3.4 percentage points over the last year demonstrates its ability to scale efficiently
At $27.01 per share, Tenable trades at 3.1x forward price-to-sales. Check out our free in-depth research report to learn more about why TENB doesn’t pass our bar.
One-Month Return: -14.3%
Built as an alternative to “walled garden” advertising ecosystems, The Trade Desk (NASDAQ:TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.
Why Is TTD a Good Business?
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Winning new contracts that can potentially increase in value as its billings growth has averaged 20.1% over the last year
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User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
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Healthy operating margin of 18.9% shows it’s a well-run company with efficient processes, and its rise over the last year was fueled by some leverage on its fixed costs
The Trade Desk is trading at $40.86 per share, or 6.1x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
One-Month Return: -16.2%
With its all-remote workforce pioneering a new approach to software development, GitLab (NASDAQ:GTLB) provides a single-application DevSecOps platform that helps development, operations, and security teams collaborate to build, secure, and deploy software faster.