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.

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

One Stock to Sell:

Jack in the Box (JACK)

One-Month Return: -10.8%

Delighting customers since its inception in 1951, Jack in the Box (NASDAQ: JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing.

Why Should You Dump JACK?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
2. Earnings per share have dipped by 20% annually over the past six years, which is concerning because stock prices follow EPS over the long term
3. 11× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

At $17.47 per share, Jack in the Box trades at 3.9x forward P/E. If you’re considering JACK for your portfolio, see our FREE research report to learn more.

Two Stocks to Buy:

Inter Parfums (IPAR)

One-Month Return: -12.8%

With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ: IPAR) manufactures and distributes fragrances worldwide.

Why Will IPAR Beat the Market?

1. Solid 14.6% annual revenue growth over the last three years underscores its brand’s appeal to consumers
2. Free cash flow margin expanded by 8.7 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends
3. ROIC punches in at 27.4%, illustrating management’s expertise in identifying profitable investments

Inter Parfums’s stock price of $92.56 implies a valuation ratio of 17x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Commerce Bancshares (CBSH)

One-Month Return: -2.4%

Founded in 1865 during the post-Civil War economic boom, Commerce Bancshares (NASDAQGS:CBSH) is a Midwest-focused bank holding company that provides retail, commercial, and wealth management services to individuals and businesses.

Why Are We Backing CBSH?

1. Net interest margin grew by 45.7 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more chips to play with
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. ROE punches in at 17.1%, illustrating management’s expertise in identifying profitable investments

Commerce Bancshares is trading at $57.63 per share, or 2x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

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 Strong Momentum 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-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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