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1 Oversold Stock Set for a Comeback and 2 We Avoid

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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?

Price charts only tell part of the story. Our team at StockStory evaluates each company's underlying fundamentals to separate temporary setbacks from structural declines. Keeping that in mind, here is one stock where the poor sentiment is creating a buying opportunity and two where the outlook is warranted.

Two Stocks to Sell:

Campbell's (CPB)

One-Month Return: -1.1%

With its iconic canned soup as its cornerstone product, Campbell's (NASDAQ: CPB) is a packaged food company with an illustrious portfolio of brands.

Why Should You Sell CPB?

  1. Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
  2. Sales are projected to tank by 2.8% over the next 12 months as demand evaporates
  3. Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 5.1% annually

At $20.77 per share, Campbell's trades at 9.7x forward P/E. Read our free research report to see why you should think twice about including CPB in your portfolio.

Assured Guaranty (AGO)

One-Month Return: +2.2%

Serving as a financial safety net for over $11 trillion in debt service payments since its founding in 2003, Assured Guaranty (NYSE: AGO) provides credit protection products that guarantee scheduled payments on municipal bonds, infrastructure projects, and structured finance obligations.

Why Do We Pass on AGO?

  1. Insurance policy sales contracted this cycle as net premiums earned decreased by 4.8% annually over the last five years
  2. Projected sales decline of 29.2% over the next 12 months indicates demand will continue deteriorating
  3. Earnings per share have contracted by 8.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance

Assured Guaranty is trading at $83.23 per share, or 0.6x forward P/B. If you’re considering AGO for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Boston Scientific (BSX)

One-Month Return: -6.8%

Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.

Why Do We Like BSX?

  1. Core business can prosper without any help from acquisitions as its organic revenue growth averaged 15.7% over the past two years
  2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 24.2% annually, topping its revenue gains
  3. Free cash flow margin expanded by 9.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Boston Scientific’s stock price of $64.79 implies a valuation ratio of 17.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

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