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2 Oversold Stocks Set for a Comeback and 1 to Ignore

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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.

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. That said, here are two stocks poised to prove the bears wrong and one where the outlook is warranted.

One Stock to Sell:

Strategic Education (STRA)

One-Month Return: -5.2%

Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ: STRA) is a career-focused higher education provider.

Why Should You Dump STRA?

  1. Sluggish trends in its domestic students suggest customers aren’t adopting its solutions as quickly as the company hoped
  2. Earnings per share fell by 7.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
  3. ROIC of 3.7% reflects management’s challenges in identifying attractive investment opportunities

Strategic Education’s stock price of $79.36 implies a valuation ratio of 13.9x forward P/E. Check out our free in-depth research report to learn more about why STRA doesn’t pass our bar.

Two Stocks to Watch:

Globus Medical (GMED)

One-Month Return: -2.6%

With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE: GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.

Why Are We Fans of GMED?

  1. Average constant currency growth of 61.4% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
  2. Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
  3. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 13.8% annually

At $56.61 per share, Globus Medical trades at 16x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Astrana Health (ASTH)

One-Month Return: +3.3%

Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ: ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.

Why Are We Positive On ASTH?

  1. Annual revenue growth of 35.9% over the last two years was superb and indicates its market share increased during this cycle
  2. Expected revenue growth of 32.8% for the next year suggests its market share will rise
  3. Earnings per share grew by 21.4% annually over the last five years, massively outpacing its peers

Astrana Health is trading at $25.48 per share, or 6.2x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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