1 Oversold Stock Ready to Bounce Back 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.

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 is one stock where the poor sentiment is creating a buying opportunity and two where the outlook is warranted.

Two Stocks to Sell:

Verizon (VZ)

One-Month Return: -2.4%

Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE:VZ) is a telecom giant providing a range of communications and internet services.

Why Should You Sell VZ?

1. Weak customer trends over the past two years suggest it may need to improve its products, pricing, or go-to-market strategy
2. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 1 percentage points over the next year
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Verizon’s stock price of $39.04 implies a valuation ratio of 8.3x forward P/E. To fully understand why you should be careful with VZ, check out our full research report (it’s free).

HP (HPQ)

One-Month Return: -11.7%

Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE:HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.

Why Do We Pass on HPQ?

1. Sales stagnated over the last five years and signal the need for new growth strategies
2. Earnings per share fell by 2.8% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.1 percentage points

HP is trading at $20.47 per share, or 6.7x forward P/E. Dive into our free research report to see why there are better opportunities than HPQ.

One Stock to Watch:

Broadridge (BR)

One-Month Return: -4.2%

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Why Does BR Stand Out?

1. Annual revenue growth of 8.9% over the last five years beat the sector average and underscores the unique value of its offerings
2. Free cash flow margin expanded by 8.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
3. Returns on capital are growing as management capitalizes on its market opportunities

At $218.64 per share, Broadridge trades at 23.3x 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

Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).

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.