When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as 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 are two stocks poised to prove Wall Street wrong and one where the outlook is warranted.
One Stock to Sell:
Amkor (AMKR)
Consensus Price Target: $36.44 (3% implied return)
Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ: AMKR) provides outsourced packaging and testing for semiconductors.
Why Does AMKR Worry Us?
- Sales tumbled by 1.6% annually over the last two years, showing market trends are working against its favor during this cycle
- Gross margin of 14.2% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Low free cash flow margin of 5.1% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Amkor is trading at $35.39 per share, or 22.7x forward P/E. Check out our free in-depth research report to learn more about why AMKR doesn’t pass our bar.
Two Stocks to Watch:
CrowdStrike (CRWD)
Consensus Price Target: $510.93 (-4.1% implied return)
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ: CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Will CRWD Beat the Market?
- Average billings growth of 25% over the last year enhances its liquidity and shows there is steady demand for its products
- Forecasted revenue growth of 21.6% for the next 12 months indicates its momentum over the last two years is sustainable
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
At $533 per share, CrowdStrike trades at 25.2x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Flowserve (FLS)
Consensus Price Target: $75.50 (8.3% implied return)
Manufacturing the largest pump ever built for nuclear power generation, Flowserve (NYSE: FLS) manufactures and sells flow control equipment for various industries.
Why Does FLS Stand Out?
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 23.6% over the last two years outstripped its revenue performance
- Free cash flow margin expanded by 5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Flowserve’s stock price of $69.71 implies a valuation ratio of 17.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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