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 are two stocks where you should be greedy instead of fearful and one where the skepticism is well-placed.
One Stock to Sell:
Under Armour (UAA)
Consensus Price Target: $6.19 (-2.2% implied return)
Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE:UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.
Why Should You Sell UAA?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $6.33 per share, Under Armour trades at 51.3x forward P/E. Dive into our free research report to see why there are better opportunities than UAA.
Two Stocks to Watch:
Teledyne (TDY)
Consensus Price Target: $665.77 (9.5% implied return)
Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE:TDY) offers digital imaging and instrumentation products for various industries.
Why Do We Like TDY?
- Impressive 14.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Operating margin improvement of 5.3 percentage points over the last five years demonstrates its ability to scale efficiently
- TDY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
Teledyne’s stock price of $607.75 implies a valuation ratio of 26.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Mueller Water Products (MWA)
Consensus Price Target: $27.67 (4.1% implied return)
As one of the oldest companies in the water infrastructure industry, Mueller (NYSE:MWA) is a provider of water infrastructure products and flow control systems for various sectors.
Why Could MWA Be a Winner?
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 43.1% annually, topping its revenue gains
- Free cash flow margin grew by 3.6 percentage points over the last five years, giving the company more chips to play with
Mueller Water Products is trading at $26.58 per share, or 19.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.