
Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
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. Keeping that in mind, here is one stock poised to prove Wall Street wrong and two where the outlook is warranted.
Two Stocks to Sell:
Academy Sports (ASO)
Consensus Price Target: $60.21 (3.6% implied return)
Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ: ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise.
Why Do We Think Twice About ASO?
- Products have few die-hard fans as sales have declined by 2.4% annually over the last three years
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Capital intensity has ramped up over the last year as its free cash flow margin decreased by 3.9 percentage points
At $58.11 per share, Academy Sports trades at 8.8x forward P/E. Check out our free in-depth research report to learn more about why ASO doesn’t pass our bar.
Universal Logistics (ULH)
Consensus Price Target: $17 (-10% implied return)
Founded in 1932, Universal Logistics (NASDAQ: ULH) is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia.
Why Should You Dump ULH?
- Annual sales declines of 2.7% for the past two years show its products and services struggled to connect with the market during this cycle
- Investment activity picked up over the last five years, pressuring its weak free cash flow margin of -0.9%
- Diminishing returns on capital suggest its earlier profit pools are drying up
Universal Logistics’s stock price of $18.89 implies a valuation ratio of 26.5x forward P/E. To fully understand why you should be careful with ULH, check out our full research report (it’s free).
One Stock to Buy:
Fluence Energy (FLNC)
Consensus Price Target: $16.82 (-35.2% implied return)
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ: FLNC) helps store renewable energy sources with battery systems.
Why Will FLNC Outperform?
- Demand is greater than supply as the company’s 21.5% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 27.4% annually, topping its revenue gains
- Cash burn has decreased over the last five years, showing the company is becoming a more self-sustaining business
Fluence Energy is trading at $25.95 per share, or 75.4x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in 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 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
