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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.

Price charts only tell part of the story. Our team at StockStory evaluates each company's underlying fundamentals to separate temporary setbacks from structural declines. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider.

MillerKnoll (MLKN)

One-Month Return: +8.8%

Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ:MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide.

Why Do We Steer Clear of MLKN?

1. Annual sales declines of 7.8% for the past two years show its products and services struggled to connect with the market during this cycle

2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 9.6% annually while its revenue grew

3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.7 percentage points

MillerKnoll’s stock price of $17.59 implies a valuation ratio of 7.1x forward P/E. Read our free research report to see why you should think twice about including MLKN in your portfolio, it’s free.

Omnicell (OMCL)

One-Month Return: -8.4%

Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ:OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency.

Why Do We Think OMCL Will Underperform?

1. Annual sales declines of 5.4% for the past two years show its products and services struggled to connect with the market during this cycle

2. Revenue base of $1.14 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale

3. Incremental sales over the last five years were much less profitable as its earnings per share fell by 7.5% annually while its revenue grew

Omnicell is trading at $28.73 per share, or 15.6x forward P/E. Dive into our free research report to see why there are better opportunities than OMCL.

Insperity (NSP)

One-Month Return: -16.1%

Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE:NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.

Why Are We Hesitant About NSP?

1. Muted 4.1% annual revenue growth over the last two years shows its demand lagged behind its business services peers

2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 5.8% annually

3. Free cash flow margin dropped by 5.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up