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. That said, here is one stock poised to prove Wall Street wrong and two where the outlook is warranted.
Two Stocks to Sell:
Albany (AIN)
Consensus Price Target: $58.67 (-21.2% implied return)
Founded in 1895, Albany (NYSE: AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.
Why Is AIN Risky?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Free cash flow margin shrank by 5.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Albany’s stock price of $74.44 implies a valuation ratio of 1.8x trailing 12-month price-to-sales. Read our free research report to see why you should think twice about including AIN in your portfolio.
International Paper (IP)
Consensus Price Target: $39.36 (2.7% implied return)
Established in 1898, International Paper (NYSE: IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.
Why Are We Out on IP?
- Annual sales growth of 3.9% over the last five years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- Earnings per share fell by 15.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $38.32 per share, International Paper trades at 22.2x forward P/E. To fully understand why you should be careful with IP, check out our full research report (it’s free).
One Stock to Buy:
Progressive (PGR)
Consensus Price Target: $230.86 (2.4% implied return)
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE: PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
Why Will PGR Outperform?
- Market penetration was impressive this cycle as its net premiums earned expanded by 16.5% annually over the last two years
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 41.6% over the last two years outstripped its revenue performance
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Progressive is trading at $225.55 per share, or 3.6x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
