1 Oversold Stock Set for a Comeback and 2 We Brush Off

GIS Cover Image

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 is one stock poised to prove the bears wrong and two where the outlook is warranted.

Two Stocks to Sell:

General Mills (GIS)

One-Month Return: -1.3%

Best known for its portfolio of powerhouse breakfast cereal brands, General Mills (NYSE: GIS) is a packaged foods company that has also made a mark in cereals, baking products, and snacks.

Why Does GIS Fall Short?

  1. Falling unit sales over the past two years suggest it might have to lower prices to stimulate growth
  2. Projected sales decline of 3.2% for the next 12 months points to an even tougher demand environment ahead
  3. Free cash flow margin dropped by 3.1 percentage points over the last year, implying the company became more capital intensive as competition picked up

At $48.38 per share, General Mills trades at 13.4x forward P/E. Dive into our free research report to see why there are better opportunities than GIS.

Kirby (KEX)

One-Month Return: -3.8%

Transporting goods along all U.S. coasts, Kirby (NYSE: KEX) provides inland and coastal marine transportation services.

Why Does KEX Give Us Pause?

  1. 4.4% annual revenue growth over the last two years was slower than its industrials peers
  2. Free cash flow margin shrank by 7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

Kirby’s stock price of $81.24 implies a valuation ratio of 12.2x forward P/E. Read our free research report to see why you should think twice about including KEX in your portfolio.

One Stock to Watch:

KBR (KBR)

One-Month Return: -8%

Known for projects like the construction of Guantanamo Bay, KBR provides professional services and technologies, specializing in engineering, construction, and government services sectors.

Why Could KBR Be a Winner?

  1. Annual revenue growth of 9.9% over the last two years beat the sector average and underscores the unique value of its offerings
  2. Operating margin expanded by 6.3 percentage points over the last five years as it scaled and became more efficient
  3. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

KBR is trading at $44.88 per share, or 10.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% 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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