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1 Oversold Stock Primed to Rebound and 2 We Brush Off

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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. Keeping that in mind, here is one stock poised to prove the bears wrong and two where the skepticism is well-placed.

Two Stocks to Sell:

Bath and Body Works (BBWI)

One-Month Return: -1.3%

Spun off from L Brands in 2020, Bath & Body Works (NYSE:BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.

Why Are We Cautious About BBWI?

  1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  2. Estimated sales growth of 2.5% for the next 12 months implies demand will slow from its six-year trend
  3. Earnings growth underperformed the sector average over the last six years as its EPS grew by just 8.5% annually

Bath and Body Works is trading at $26.12 per share, or 7.3x forward P/E. If you’re considering BBWI for your portfolio, see our FREE research report to learn more.

Oxford Industries (OXM)

One-Month Return: -19.8%

The parent company of Tommy Bahama, Oxford Industries (NYSE:OXM) is a lifestyle fashion conglomerate with brands that embody outdoor happiness.

Why Is OXM Risky?

  1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  2. Estimated sales growth of 1.4% for the next 12 months is soft and implies weaker demand
  3. Waning returns on capital imply its previous profit engines are losing steam

Oxford Industries’s stock price of $37.52 implies a valuation ratio of 11.4x forward P/E. To fully understand why you should be careful with OXM, check out our full research report (it’s free for active Edge members).

One Stock to Buy:

Copart (CPRT)

One-Month Return: -5.9%

Starting as a single salvage yard in California in 1982, Copart (NASDAQ:CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.

Why Will CPRT Beat the Market?

  1. Market share has increased this cycle as its 16.1% annual revenue growth over the last five years was exceptional
  2. Additional sales over the last five years increased its profitability as the 20% annual growth in its earnings per share outpaced its revenue
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business

At $44.80 per share, Copart trades at 26.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, 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 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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