While the S&P 500 has fallen only 1.4% over the past six months, shares of Matthews International (NASDAQ:MATW) have dropped 8.6% and are currently trading at $21.21. The main reason behind this decline was the company’s disappointing quarterly results, which have raised concerns among investors.

Although the current price may seem attractive, analysts do not recommend buying MATW. They cite three reasons why Matthews is less appealing than other investment opportunities on the market.

First, the company’s revenue has grown at a modest 2.7% compound annual rate over the past five years — well below expectations. Second, its earnings per share (EPS) have declined by 10% annually, indicating decreasing efficiency despite moderate sales growth. Third, the return on invested capital (ROIC) has averaged just 6% over the past five years, far below the levels seen in top-performing companies in the sector.

Despite the relatively low valuation (4.5× EV/EBITDA), experts believe there are more promising investments available. Instead of MATW, they recommend focusing on fast-growing companies in the digital advertising space.

Analysts suggest reviewing a list of five high-momentum stocks, including well-known names like Nvidia (+2,183% since the end of 2019) and lesser-known stars such as Comfort Systems (+751% over the same period).