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. Keeping that in mind, here are two stocks poised to prove the bears wrong and one where the outlook is warranted.
One Stock to Sell:
H&R Block (HRB)
One-Month Return: -3.8%
Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE:HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.
Why Should You Dump HRB?
- Lackluster 5.3% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Poor free cash flow margin of 16.7% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Stagnant returns on capital show management has failed to improve the company’s business quality
At $42.06 per share, H&R Block trades at 8.7x forward P/E. Read our free research report to see why you should think twice about including HRB in your portfolio.
Two Stocks to Watch:
Marsh & McLennan (MMC)
One-Month Return: -1.1%
With roots dating back to 1871 and a presence in over 130 countries, Marsh & McLennan (NYSE:MMC) is a global professional services firm that helps organizations manage risk, strategy, and workforce challenges through its four specialized businesses.
Why Are We Fans of MMC?
- Massive revenue base of $26.45 billion makes it a well-known name that influences purchasing decisions
- Share buybacks catapulted its annual earnings per share growth to 13.8%, which outperformed its revenue gains over the last five years
- Strong free cash flow margin of 16.2% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
Marsh & McLennan is trading at $182.60 per share, or 18.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Erie Indemnity (ERIE)
One-Month Return: -0.3%
Operating under a unique business model dating back to 1925, Erie Indemnity (NASDAQ:ERIE) serves as the attorney-in-fact for Erie Insurance Exchange, managing policy issuance, claims handling, and investment services for this reciprocal insurer.
Why Will ERIE Outperform?
- Annual revenue growth of 13.2% over the past two years was outstanding, reflecting market share gains this cycle
- Annual book value per share growth of 13.1% over the last five years was superb and indicates its capital strength increased during this cycle
- Industry-leading 27.2% return on equity demonstrates management’s skill in finding high-return investments
Erie Indemnity’s stock price of $283.06 implies a valuation ratio of 20.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.