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. That said, here are two stocks poised to prove Wall Street wrong and one where the outlook is warranted.

One Stock to Sell:

L.B. Foster (FSTR)

Consensus Price Target: $29 (6.2% implied return)

Founded with a $2,500 loan, L.B. Foster (NASDAQ: FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.

Why Does FSTR Fall Short?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
2. Performance over the past five years was negatively impacted by new share issuances as its earnings per share fell by 31.4% annually while its revenue was flat
3. ROIC of 3.4% reflects management’s challenges in identifying attractive investment opportunities

At $27.32 per share, L.B. Foster trades at 6.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than FSTR.

Two Stocks to Watch:

Lululemon (LULU)

Consensus Price Target: $193.54 (6% implied return)

Originally serving yogis and hockey players, Lululemon (NASDAQ: LULU) is a designer, distributor, and retailer of athletic apparel for men and women.

Why Do We Love LULU?

1. Locations open for at least a year are seeing increased demand as same-store sales have averaged 5.3% growth over the past two years
2. Collection of products is difficult to replicate at scale and results in a best-in-class gross margin of 58.8%
3. LULU is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Lululemon is trading at $182.60 per share, or 15.1x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Acuity Brands (AYI)

Consensus Price Target: $399.25 (8.2% implied return)

One of the pioneers of smart lights, Acuity (NYSE: AYI) designs and manufactures light fixtures and building management systems used in various industries.

Why Could AYI Be a Winner?

1. Offerings are mission-critical for businesses and result in a stellar gross margin of 44.5%
2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. ROIC punches in at 16.6%, illustrating management’s expertise in identifying profitable investments

Acuity Brands’s stock price of $368.96 implies a valuation ratio of 18.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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 Tecnoglass (+1,754% 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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