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Further Reading from MarketBeat Don't Try to Catch These 3 Falling KnivesReported by Dan Schmidt. Article Published: 2/23/2026. 
Key Points - Its tempting to try to catch a falling knife, and there are have been plenty of stocks that rebounded after a 50% or 60% decline.
- However, most stocks that drop precipitously do so for a reason, and attempting to catch them only results in more losses.
- These three stocks all have brand recognition and past successes, but their recent earnings reports point to more downside ahead.
- Special Report: [Sponsorship-Ad-6-Format3]
Trying to catch a falling knife can be tempting, especially when it's a company you know well. Many of the biggest winners over the last 20 years endured drawdowns of 40%, 50% or even 60% for extended periods, only to roar back to new all-time highs months or years later. Those are the comeback stories we remember. It's easy to overlook formerly strong companies that suffered major drawdowns and never recovered. Yes, we're looking at you, AMC Entertainment Holdings Inc. (NYSE: AMC). Below are three companies that look like falling knives today — businesses facing material headwinds you probably don't want to try to catch. PayPal Holdings: Branded Checkout Bust Adds to Market Share Losses It's hard to believe a company as ubiquitous as PayPal Holdings Inc. (NASDAQ: PYPL) could be in such a bind. Just a decade ago, people regularly used PayPal's apps to send payments and Venmo was on its way to becoming a verb. Now, Venmo and PayPal often feel relegated to splitting restaurant checks or collecting small friend-to-friend payments. Contactless wallets and point-of-sale alternatives like Apple Pay and Google Pay are chipping away at PayPal's market share, and the company's recent results underscored those challenges. PayPal reported its Q4 2025 results on Feb. 3 and missed both revenue and earnings estimates, despite 4% year-over-year revenue growth. Venmo and the Buy Now, Pay Later business both posted ~20% revenue growth, but PayPal's branded online checkout barely expanded in 2025 — just 1% year over year versus 6% a year earlier. The company also made an abrupt leadership change, replacing CEO Alex Chriss with Enrique Lores. 
Shares plunged more than 20% after the earnings miss, extending an overall decline of roughly 85% over the past five years. The technical picture offers little comfort: PYPL hasn't cleared the 50-day simple moving average (SMA) since last July and currently trades well below both the 50- and 200-day SMAs. Even while the Relative Strength Index (RSI) spent much of the month in oversold territory, the stock failed to bounce — a sign that further weakness is possible. Genuine Parts Co.: Massive Earnings Miss Compounds Financial Troubles Genuine Parts Company (NYSE: GPC) remains burdened by several financial headwinds, including fallout from the bankruptcy of a key supplier, First Brands Group. The First Brands issue isn't the only concern. A disastrous earnings release on Feb. 17 highlighted additional problems for the auto-parts supplier. The company's Q4 2025 earnings missed both EPS and revenue expectations and included substantial pretax charges: $150 million related to First Brands and another $742 million for a pension settlement. Those one-time charges don't fully explain the weakness: operating margins turned negative after improving 3.3% in the same quarter a year earlier, signaling deeper operational pressures. 
GPC shares fell nearly 15% after the report and kept sliding in subsequent sessions, wiping out all 2026 gains in hours and pushing the stock below both the 50- and 200-day SMAs. The Moving Average Convergence Divergence (MACD) has flipped bearish as well. Until Genuine Parts can demonstrate a credible turnaround, the technicals and fundamentals suggest this name remains a high-risk proposition. Vulcan Materials Company: In Search of a Housing Revival Vulcan Materials Co. (NYSE: VMC) posted an earnings report this week that didn't inspire confidence. Even though the broader industrials sector has shown strength in 2026, Vulcan continues to lag because single-family housing — a core end market for its gravel, sand and crushed-stone products — remains sluggish. The stock is up about 5% year-to-date, but the company's Q4 2025 results painted a weak picture. Vulcan reported EPS of $1.70 versus an expected $2.11, roughly a 20% miss that surprised analysts and investors. Revenue also fell short ($1.91 billion vs. an expected $1.95 billion), and guidance pointed to only 1–3% growth in aggregate shipments. With single-family home construction soft, Vulcan is increasingly relying on projects like data center construction, which typically use lower-value materials than residential builds. 
The earnings shortfall sent the stock down about 10%, though it closed the day down slightly less than 8%. The bounce stalled at the 50-day SMA, which may now act as resistance rather than support — a technical shift that often precedes further declines. The MACD's bearish crossover reinforces that downside risk for VMC investors.
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