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. That said, here is one stock where you should be greedy instead of fearful and two where the outlook is warranted.

Two Stocks to Sell:

Lamb Weston (LW)

One-Month Return: +6%

Best known for its Grown in Idaho brand, Lamb Weston (NYSE: LW) produces and distributes potato products such as frozen french fries and mashed potatoes.

Why Does LW Give Us Pause?

1. Demand will likely fall over the next 12 months as Wall Street expects flat revenue
2. Efficiency has decreased over the last year as its operating margin fell by 6.2 percentage points
3. Poor free cash flow margin of 0.8% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

At $57 per share, Lamb Weston trades at 16.6x forward P/E. Dive into our free research report to see why there are better opportunities than LW.

DXC (DXC)

One-Month Return: -2.2%

Born from the 2017 merger of Computer Sciences Corporation and HP Enterprise's services business, DXC Technology (NYSE: DXC) is a global IT services company that helps businesses transform their technology infrastructure, applications, and operations.

Why Are We Out on DXC?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Earnings per share have dipped by 6.8% annually over the past five years, which is concerning because stock prices follow EPS over the long term
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up

DXC is trading at $14.83 per share, or 4.4x forward P/E. Check out our free in-depth research report to learn more about why DXC doesn’t pass our bar.

One Stock to Watch:

Lantheus (LNTH)

One-Month Return: -9.8%

Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.

Why Could LNTH Be a Winner?

1. Annual revenue growth of 34.3% over the past five years was outstanding, reflecting market share gains this cycle
2. Free cash flow margin increased by 29.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
3. Rising returns on capital show management is finding more attractive investment opportunities

Lantheus’s stock price of $73 implies a valuation ratio of 10.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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-micro-cap company Tecnoglass (+1,754% 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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