1 Oversold Stock Ready to Bounce Back and 2 We Brush Off

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. That said, here is one stock poised to prove the bears wrong and two facing legitimate challenges.

Two Stocks to Sell:

F&G Annuities & Life (FG)

One-Month Return: -17%

Founded in 1959 and serving approximately 677,000 policyholders who rely on its financial protection products, F&G Annuities & Life (NYSE:FG) provides fixed annuities, life insurance, and pension risk transfer solutions to retail and institutional clients.

Why Is FG Not Exciting?

1. Expenses have increased as a percentage of revenue over the last four years as its pre-tax profit margin fell by 21.6 percentage points
2. Annual book value per share declines of 4.6% for the past four years show its capital management struggled during this cycle
3. Below-average return on equity indicates management struggled to find compelling investment opportunities

F&G Annuities & Life’s stock price of $23.14 implies a valuation ratio of 0.6x forward P/B. If you’re considering FG for your portfolio, see our FREE research report to learn more.

Oaktree Specialty Lending (OCSL)

One-Month Return: -6.3%

Managed by Oaktree Capital Management, one of the world's premier alternative investment firms, Oaktree Specialty Lending (NASDAQ:OCSL) is a business development company that provides customized financing solutions to mid-market companies across various industries.

Why Do We Pass on OCSL?

1. Annual sales declines of 12.4% for the past two years show its products and services struggled to connect with the market during this cycle
2. Sales were less profitable over the last two years as its earnings per share fell by 18.1% annually, worse than its revenue declines
3. Annual tangible book value per share declines of 4.5% for the past five years show its capital management struggled during this cycle

At $11.60 per share, Oaktree Specialty Lending trades at 7.7x forward P/E. To fully understand why you should be careful with OCSL, check out our full research report (it’s free).

One Stock to Watch:

Sallie Mae (SLM)

One-Month Return: -27.9%

Originally created as a government-sponsored enterprise before privatizing in 2004, Sallie Mae (NASDAQ:SLM) is a financial services company that provides private education loans, savings products, and educational resources to help students and families pay for college.

Why Do We Like SLM?

1. Share repurchases over the last two years enabled its annual earnings per share growth of 20.2% to outpace its revenue gains
2. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

Sallie Mae is trading at $19.35 per share, or 7.3x 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

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.