Rock-bottom prices don't always mean rock-bottom businesses. The stocks we're examining today have all touched their 52-week lows, creating a classic investor's dilemma: bargain opportunity or value trap?

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. Keeping that in mind, here are two stocks poised to prove the bears wrong and one facing legitimate challenges.

One Stock to Sell:

Helios (HLIO)

One-Month Return: -23.7%

Founded on the principle of treating others as one wants to be treated, Helios (NYSE:HLIO) designs, manufactures, and sells motion and electronic control components for various sectors.

Why Do We Pass on HLIO?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy

2. Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 2.9% annually

3. 6.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Helios is trading at $27.47 per share, or 11.8x forward price-to-earnings. Check out our free in-depth research report to learn more about why HLIO doesn’t pass our bar .

Two Stocks to Watch:

Chipotle (CMG)

One-Month Return: +0.9%

Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE:CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.

Why Will CMG Outperform?

1. Rapid rollout of new restaurants to capitalize on market opportunities makes sense given its strong same-store sales performance

2. Average same-store sales growth of 7.7% over the past two years indicates its restaurants are resonating with diners

3. Enormous revenue base of $11.31 billion provides significant leverage in supplier negotiations

At $50.50 per share, Chipotle trades at 37.9x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free .

PACCAR (PCAR)

One-Month Return: -8%

Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.

Why Do We Like PCAR?

1. Operating margin expanded by 6.3 percentage points over the last five years as it scaled and became more efficient

2. ROIC punches in at 30.7%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities

3. Returns on capital are climbing as management makes more lucrative bets