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 three stocks where the outlook is warranted and some alternatives with better fundamentals.

AMC Entertainment (AMC)

One-Month Return: -11.6%

With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE:AMC) operates movie theaters primarily in the US and Europe.

Why Are We Out on AMC?

1. Annual sales declines of 3.3% for the past five years show its products and services struggled to connect with the market

2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

AMC Entertainment is trading at $2.72 per share, or 1.9x forward EV-to-EBITDA. If you’re considering AMC for your portfolio, see our FREE research report to learn more .

Integra LifeSciences (IART)

One-Month Return: -22%

Founded in 1989 as a pioneer in regenerative medicine technology, Integra LifeSciences (NASDAQ:IART) develops and manufactures medical technologies for neurosurgery, wound care, and surgical reconstruction, including regenerative tissue products and surgical instruments.

Why Should You Sell IART?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth

2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.4% annually

3. Free cash flow margin shrank by 10.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Integra LifeSciences’s stock price of $17.29 implies a valuation ratio of 6.7x forward price-to-earnings. Read our free research report to see why you should think twice about including IART in your portfolio, it’s free .

Select Medical (SEM)

One-Month Return: -0.4%

With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE:SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States.

Why Do We Think Twice About SEM?

1. Declining admissions over the past two years imply it may need to invest in improvements to get back on track

2. Sales are projected to tank by 17.4% over the next 12 months as demand evaporates

3. Free cash flow margin shrank by 11.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive