Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. That said, here are two stocks where you should be greedy instead of fearful and one where the outlook is warranted.
One Stock to Sell:
Waters Corporation (WAT)
Consensus Price Target: $406.34 (6.6% implied return)
Founded in 1958 and pioneering innovations in laboratory analysis for over six decades, Waters (NYSE: WAT) develops and manufactures analytical instruments, software, and consumables for liquid chromatography, mass spectrometry, and thermal analysis used in scientific research and quality testing.
Why Is WAT Not Exciting?
- Annual revenue growth of 1.8% over the last two years was below our standards for the healthcare sector
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Waters Corporation is trading at $381.31 per share, or 27.7x forward P/E. Dive into our free research report to see why there are better opportunities than WAT.
Two Stocks to Watch:
AAR (AIR)
Consensus Price Target: $92.25 (12.1% implied return)
The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE: AIR) is a provider of aircraft maintenance services
Why Are We Positive On AIR?
- Market share has increased this cycle as its 16.8% annual revenue growth over the last two years was exceptional
- Projected revenue growth of 12% for the next 12 months suggests its momentum from the last two years will persist
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 18.9% annually
AAR’s stock price of $82.29 implies a valuation ratio of 18.4x 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 .
F&G Annuities & Life (FG)
Consensus Price Target: $34 (10.2% implied return)
Founded in 1959 and serving approximately 677,000 policyholders who rely on its financial protection products, F&G Annuities & Life (NYSE: FG) provides fixed annuities, life insurance, and pension risk transfer solutions to retail and institutional clients.
Why Should You Buy FG?
- Net premiums earned expanded by 28.6% annually over the last two years, demonstrating exceptional market penetration this cycle
- Balance sheet strength has increased this cycle as its 37.7% annual book value per share growth over the last two years was exceptional
- Capital strength is on track to rise over the next 12 months as its 41% projected book value per share growth implies profitability will accelerate from its two-year trend
At $30.85 per share, F&G Annuities & Life trades at 0.9x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
