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 three stocks where Wall Street’s pessimism is creating a buying opportunity.

Tractor Supply (TSCO)

Consensus Price Target: $54.37 (7% implied return)

Started as a mail-order tractor parts business, Tractor Supply (NASDAQ: TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer.

Why Are We Fans of TSCO?

1. Aggressive expansion of new stores reflects an offensive push to quickly grow and sell in markets where it has few or no locations
2. Forecasted revenue growth of 5.6% for the next 12 months indicates its momentum over the last six years is sustainable
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Tractor Supply’s stock price of $50.82 implies a valuation ratio of 23.3x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

United Rentals (URI)

Consensus Price Target: $767.71 (4.4% implied return)

Owning the largest rental fleet in the world, United Rentals (NYSE: URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.

Why Are We Positive On URI?

1. Annual revenue growth of 12.1% over the last two years was superb and indicates its market share increased during this cycle
2. Highly efficient business model is illustrated by its impressive 25.6% operating margin, and its rise over the last five years was fueled by some leverage on its fixed costs
3. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

At $735.26 per share, United Rentals trades at 16.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Trane Technologies (TT)

Consensus Price Target: $413.85 (-2.2% implied return)

With low-pressure heating systems as its first product, Trane (NYSE: TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.

Why Will TT Outperform?

1. Impressive 11.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 23.7% exceeded its revenue gains over the last two years
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are climbing as it finds even more attractive growth opportunities

Trane Technologies is trading at $422.96 per share, or 32.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% 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.