1 Unpopular Stock That Deserves a Second Chance and 2 That Underwhelm

September 05, 2025 at 00:37 AM EDT

ORLY Cover Image

Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.

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 where you should be greedy instead of fearful and two where the skepticism is well-placed.

Two Stocks to Sell:

Monro (MNRO)

Consensus Price Target: $16 (-6.8% implied return)

Started as a single location in Rochester, New York, Monro (NASDAQ: MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.

Why Should You Sell MNRO?

Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 6 percentage points
Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up

Monro is trading at $17.17 per share, or 24.3x forward P/E. If you’re considering MNRO for your portfolio, see our FREE research report to learn more.

Artisan Partners (APAM)

Consensus Price Target: $45.63 (-2.9% implied return)

Founded in 1994 with a focus on autonomous investment teams and a "high-value-added" approach, Artisan Partners (NYSE: APAM) is an investment management firm that offers actively managed equity and fixed income strategies to institutional and individual investors.

Why Are We Hesitant About APAM?

6.8% annual revenue growth over the last five years was slower than its financials peers
Annual earnings per share growth of 5.2% underperformed its revenue over the last five years, showing its incremental sales were less profitable

Artisan Partners’s stock price of $46.99 implies a valuation ratio of 2.5x forward price-to-sales. Read our free research report to see why you should think twice about including APAM in your portfolio.

One Stock to Buy:

O'Reilly (ORLY)

Consensus Price Target: $106.86 (1.4% implied return)

Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ: ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.

Why Will ORLY Outperform?

Comparable store sales rose by 3.9% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
Unique assortment of products and pricing power are reflected in its best-in-class gross margin of 51.3%
ORLY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $105.40 per share, O'Reilly trades at 33.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

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