1 Oversold Stock Set for a Comeback and 2 That Underwhelm

Rock-bottom prices don’t always mean rock-bottom businesses. The stocks we’re examining today have all touched their 52-week lows, creating a classic investor’s dilemma: bargain opportunity or value trap?

While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two where the outlook is warranted.

Two Stocks to Sell:

Waste Connections (WCN)

One-Month Return: -7.4%

Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE:WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.

Why Are We Cautious About WCN?

1. Estimated sales growth of 5.4% for the next 12 months implies demand will slow from its two-year trend
2. Free cash flow margin shrank by 2.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

At $149.37 per share, Waste Connections trades at 26.9x forward P/E. To fully understand why you should be careful with WCN, check out our full research report (it’s free).

Franklin BSP Realty Trust (FBRT)

One-Month Return: -6.6%

Operating as a specialized real estate investment trust (REIT) with roots dating back to 2012, Franklin BSP Realty Trust (NYSE:FBRT) originates and manages a diversified portfolio of commercial real estate debt investments secured by properties in the United States and abroad.

Why Are We Out on FBRT?

1. Net interest income stagnated over the last five years and signals the need for new growth strategies
2. Estimated net interest income decline of 3.7% for the next 12 months implies an even more challenging demand environment
3. Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term

Franklin BSP Realty Trust’s stock price of $8.68 implies a valuation ratio of 0.6x forward P/B. Dive into our free research report to see why there are better opportunities than FBRT.

One Stock to Watch:

Raymond James (RJF)

One-Month Return: -8.2%

Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE:RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.

Why Could RJF Be a Winner?

1. 11.6% annual revenue growth over the last five years surpassed the sector average as its products resonated with customers
2. Performance over the past five years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

Raymond James is trading at $143.42 per share, or 11.3x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.