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.
Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two facing legitimate challenges.
Two Stocks to Sell:
Church & Dwight (CHD)
Consensus Price Target: $102.16 (6.1% implied return)
Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE: CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.
Why Does CHD Give Us Pause?
- Annual revenue growth of 4.1% over the last three years was below our standards for the consumer staples sector
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
Church & Dwight is trading at $96.26 per share, or 25.2x forward P/E. Check out our free in-depth research report to learn more about why CHD doesn’t pass our bar.
Bruker (BRKR)
Consensus Price Target: $49.15 (7.3% implied return)
With roots dating back to the pioneering days of nuclear magnetic resonance technology, Bruker (NASDAQ: BRKR) develops and manufactures high-performance scientific instruments that enable researchers and industrial analysts to explore materials at microscopic, molecular, and cellular levels.
Why Does BRKR Worry Us?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 7.7 percentage points
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $45.82 per share, Bruker trades at 20.1x forward P/E. To fully understand why you should be careful with BRKR, check out our full research report (it’s free).
One Stock to Watch:
NetApp (NTAP)
Consensus Price Target: $117.60 (-15.6% implied return)
Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ: NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.
Why Do We Like NTAP?
- Average billings growth of 7.6% over the past two years enhances its liquidity and shows there is steady demand for its products
- Adjusted operating margin expanded by 5.4 percentage points over the last five years as it scaled and became more efficient
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
NetApp’s stock price of $139.30 implies a valuation ratio of 14.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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.
