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?

While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.

General Mills (GIS)

One-Month Return: -4.6%

Best known for its portfolio of powerhouse breakfast cereal brands, General Mills (NYSE:GIS) is a packaged foods company that has also made a mark in cereals, baking products, and snacks.

Why Are We Hesitant About GIS?

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

2. 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

3. Projected sales decline of 4.3% for the next 12 months points to a tough demand environment ahead

At $55 per share, General Mills trades at 13x forward P/E. To fully understand why you should be careful with GIS, check out our full research report (it’s free).

JELD-WEN (JELD)

One-Month Return: -23.1%

Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE:JELD) manufactures doors, windows, and other related building products.

Why Are We Out on JELD?

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. 10.7 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

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

JELD-WEN’s stock price of $4 implies a valuation ratio of 6.7x forward P/E. Check out our free in-depth research report to learn more about why JELD doesn’t pass our bar.

3D Systems (DDD)

One-Month Return: -3.4%

Founded by the inventor of stereolithography, 3D Systems (NYSE:DDD) engineers, manufactures, and sells 3D printers and other related products to the aerospace, automotive, healthcare, and consumer goods industries.

Why Do We Think DDD Will Underperform?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 6.9% annually over the last five years

2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders