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1 Oversold Stock Ready to Bounce Back and 2 Facing Headwinds

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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 poised to prove the bears wrong and two where the outlook is warranted.

Two Stocks to Sell:

Charter (CHTR)

One-Month Return: -4.6%

Operating as Spectrum, Charter (NASDAQ: CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.

Why Are We Cautious About CHTR?

  1. Demand for its offerings was relatively low as its number of internet subscribers has underwhelmed
  2. Projected sales for the next 12 months are flat and suggest demand will be subdued
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Charter is trading at $254 per share, or 6.2x forward P/E. Check out our free in-depth research report to learn more about why CHTR doesn’t pass our bar.

Whirlpool (WHR)

One-Month Return: -10.2%

Credited with introducing the first automatic washing machine, Whirlpool (NYSE: WHR) is a manufacturer of a variety of home appliances.

Why Should You Dump WHR?

  1. Disappointing unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
  2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
  3. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Whirlpool’s stock price of $72.81 implies a valuation ratio of 11.2x forward P/E. Dive into our free research report to see why there are better opportunities than WHR.

One Stock to Watch:

Domino's (DPZ)

One-Month Return: -1.9%

Founded by two brothers in Michigan, Domino’s (NYSE: DPZ) is a globally recognized pizza chain known for its creative marketing and fast delivery.

Why Does DPZ Stand Out?

  1. Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
  2. Free cash flow margin increased by 2.3 percentage points over the last year, giving the company more capital to invest or return to shareholders
  3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

At $417 per share, Domino's trades at 22.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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