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 where you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
Comcast (CMCSA)
One-Month Return: -7%
Formerly known as American Cable Systems, Comcast (NASDAQ:CMCSA) is a multinational telecommunications company offering a wide range of services.
Why Should You Dump CMCSA?
- Performance surrounding its domestic broadband customers has lagged its peers
- Estimated sales growth of 2.7% for the next 12 months is soft and implies weaker demand
- Free cash flow margin is forecasted to shrink by 3.1 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
At $27.41 per share, Comcast trades at 6.6x forward P/E. To fully understand why you should be careful with CMCSA, check out our full research report (it’s free for active Edge members).
Karat Packaging (KRT)
One-Month Return: +0.7%
Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.
Why Is KRT Not Exciting?
- Sales trends were unexciting over the last two years as its 6.1% annual growth was below the typical industrials company
- Issuance of new shares over the last two years caused its earnings per share to fall by 9.4% annually while its revenue grew
- Low free cash flow margin of 5.5% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Karat Packaging is trading at $23.18 per share, or 14.5x forward P/E. Dive into our free research report to see why there are better opportunities than KRT.
One Stock to Buy:
Morningstar (MORN)
One-Month Return: -4.5%
Founded in 1984 by Joe Mansueto with just $80,000 in personal savings, Morningstar (NASDAQ:MORN) provides independent investment data, research, and analysis tools that help investors, advisors, and institutions make informed financial decisions.
Why Will MORN Outperform?
- Solid 12.3% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Share buybacks catapulted its annual earnings per share growth to 131%, which outperformed its revenue gains over the last two years
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Morningstar’s stock price of $215.17 implies a valuation ratio of 21.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.