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.

While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. That said, here is one stock where the poor sentiment is creating a buying opportunity and two where the outlook is warranted.

Two Industrials Stocks to Sell:

Array (ARRY)

One-Month Return: -20%

Going public in October 2020, Array (NASDAQ:ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.

Why Are We Out on ARRY?

1. Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy

2. Negative free cash flow raises questions about the return timeline for its investments

3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Array is trading at $4.50 per share, or 5.8x forward price-to-earnings. Read our free research report to see why you should think twice about including ARRY in your portfolio, it’s free .

Flowserve (FLS)

One-Month Return: -16.1%

Manufacturing the largest pump ever built for nuclear power generation, Flowserve (NYSE:FLS) manufactures and sells flow control equipment for various industries.

Why Does FLS Worry Us?

1. Average backlog growth of 5.6% over the past two years was mediocre and suggests fewer customers signed long-term contracts

2. Estimated sales growth of 5% for the next 12 months implies demand will slow from its two-year trend

3. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 4.1% annually

At $44 per share, Flowserve trades at 13.6x forward price-to-earnings. To fully understand why you should be careful with FLS, check out our full research report (it’s free) .

One Industrials Stock to Watch:

Hubbell (HUBB)

One-Month Return: +1.8%

A respected player in the electrical segment, Hubbell (NYSE:HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.

Why Are We Positive On HUBB?

1. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient

2. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 24.9% annually

3. Industry-leading 25.1% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities