2 Oversold Stocks Primed to Rebound and 1 Facing Challenges

The past year hasn't been kind to the stocks featured in this article. Each has tumbled to their lowest points in 12 months, leaving investors to decide whether they're witnessing fire sales or falling knives.

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. Keeping that in mind, here are two stocks where the poor sentiment is creating a buying opportunity and one facing legitimate challenges.

One Stock to Sell:

America's Car-Mart (CRMT)

One-Month Return: -34.9%

With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ:CRMT) sells used cars to budget-conscious consumers.

Why Do We Think CRMT Will Underperform?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
2. Earnings per share have contracted by 38.3% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $30.01 per share, America's Car-Mart trades at 7.5x forward P/E. Read our free research report to see why you should think twice about including CRMT in your portfolio.

Two Stocks to Watch:

Lantheus (LNTH)

One-Month Return: -7.1%

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 Do We Like LNTH?

1. Impressive 35.6% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Free cash flow margin grew by 22.9 percentage points over the last five years, giving the company more chips to play with
3. Rising returns on capital show management is finding more attractive investment opportunities

Lantheus is trading at $51.72 per share, or 7.7x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Zoetis (ZTS)

One-Month Return: -8.7%

Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.

Why Are We Fans of ZTS?

1. Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 8.6% over the past two years
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

Zoetis’s stock price of $141.40 implies a valuation ratio of 21.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

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 6 Stocks for this week. 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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