1 Oversold Stock Set for a Comeback and 2 We Ignore

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.

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

Two Stocks to Sell:

McCormick (MKC)

One-Month Return: -5.5%

The classic red Heinz ketchup bottle’s competitor, McCormick (NYSE:MKC) sells food-flavoring products like condiments, spices, and seasoning mixes.

Why Are We Wary of MKC?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Estimated sales growth of 2.8% for the next 12 months is soft and implies weaker demand
3. 4.8 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position

McCormick’s stock price of $70.74 implies a valuation ratio of 22.4x forward P/E. Read our free research report to see why you should think twice about including MKC in your portfolio.

Teleflex (TFX)

One-Month Return: -6%

With a portfolio spanning from vascular access catheters to minimally invasive surgical tools, Teleflex (NYSE:TFX) designs, manufactures, and supplies single-use medical devices used in critical care and surgical procedures across hospitals worldwide.

Why Are We Hesitant About TFX?

1. Muted 2.8% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers
2. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $111 per share, Teleflex trades at 7.5x forward P/E. Dive into our free research report to see why there are better opportunities than TFX.

One Stock to Buy:

Elevance Health (ELV)

One-Month Return: -25.5%

Formerly known as Anthem until its 2022 rebranding, Elevance Health (NYSE:ELV) is one of America's largest health insurers, serving approximately 47 million medical members through its network-based managed care plans.

Why Will ELV Outperform?

1. Massive revenue base of $189.2 billion gives it meaningful leverage when negotiating reimbursement rates
2. Forecasted revenue growth of 7.6% for the next 12 months suggests stronger momentum versus most peers
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Elevance Health is trading at $277.45 per share, or 7.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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 Kadant (+351% 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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