2 Oversold Stocks Set for a Comeback and 1 We Ignore

2 Oversold Stocks Set for a Comeback and 1 We Ignore

Anthony Lee

Wed, February 11, 2026 at 1:37 PM GMT+9 4 min read

In this article:

•                                       StockStory Top Pick 
  

  S

  +4.49%

 GPK  

 +0.75%  

 

 

 SNAP  

 +0.77%  

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.

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 are two stocks where you should be greedy instead of fearful and one where the outlook is warranted.

One Stock to Sell:

Graphic Packaging Holding (GPK)

One-Month Return: -14.5%

Founded in 1991, Graphic Packaging (NYSE:GPK) is a provider of paper-based packaging solutions for a wide range of products.

Why Should You Sell GPK?

Declining unit sales over the past two years imply it may need to invest in improvements to get back on track

Projected sales decline of 1.7% over the next 12 months indicates demand will continue deteriorating

Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

At $13.38 per share, Graphic Packaging Holding trades at 14.3x forward P/E. To fully understand why you should be careful with GPK, check out our full research report (it’s free).

Two Stocks to Watch:

Snap (SNAP)

One-Month Return: -36.1%

Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network.

Why Do We Like SNAP?

Healthy EBITDA margin of 10.6% shows it’s a well-run company with efficient processes, and its rise over the last few years was fueled by some leverage on its fixed costs

Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 27.9% outpaced its revenue gains

Free cash flow margin jumped by 6.2 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Snap’s stock price of $5.24 implies a valuation ratio of 9.7x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

SentinelOne (S)

One-Month Return: -8.7%

Built on the principle of “fighting machine with machine,” SentinelOne (NYSE:S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems.

Why Will S Beat the Market?

Customers view its software as mission-critical to their operations as its ARR has averaged 24.6% growth over the last year

Forecasted revenue growth of 20.1% for the next 12 months indicates its momentum over the last two years is sustainable

Free cash flow margin is anticipated to expand by 3.4 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends

 






La historia continúa  

SentinelOne is trading at $13.74 per share, or 3.8x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

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