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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here is one stock poised to prove Wall Street wrong and two facing legitimate challenges.
Two Stocks to Sell:
MongoDB (MDB)
Consensus Price Target: $406.35 (-13.8% implied return)
Named after "humongous database," reflecting its ability to handle massive data loads, MongoDB (NASDAQ: MDB) provides a flexible document-based database platform that helps developers build, deploy, and maintain modern applications more efficiently.
Why Does MDB Fall Short?
- Drawn-out sales process reflects its software’s integration hurdles with enterprise clients, restraining customer growth potential
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
- Free cash flow margin is forecasted to shrink by 4 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
MongoDB is trading at $471.25 per share, or 11.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MDB.
Lockheed Martin (LMT)
Consensus Price Target: $632.95 (5.6% implied return)
Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE: LMT) specializes in defense, space, homeland security, and information technology products.
Why Do We Think LMT Will Underperform?
- Annual sales growth of 2.9% 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 were flat over the last two years while its revenue grew, showing its incremental sales were less profitable
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $599.15 per share, Lockheed Martin trades at 19.6x forward P/E. Read our free research report to see why you should think twice about including LMT in your portfolio.
One Stock to Watch:
Burlington (BURL)
Consensus Price Target: $375.88 (5.7% implied return)
Founded in 1972 as a discount coat and outerwear retailer, Burlington Stores (NYSE: BURL) is now an off-price retailer that has broadened into general apparel, footwear, and home goods.
Why Does BURL Catch Our Eye?
- Offensive push to build new stores and attack its untapped market opportunities is backed by its same-store sales growth
- Same-store sales growth averaged 3.5% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Free cash flow margin jumped by 6.4 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Burlington’s stock price of $355.47 implies a valuation ratio of 29.3x forward P/E. Is now the time to initiate a position? Find out 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.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
