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 is one stock poised to prove Wall Street wrong and two where the outlook is warranted.
Two Stocks to Sell:
Academy Sports (ASO)
Consensus Price Target: $60.17 (2.5% implied return)
Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ: ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise.
Why Does ASO Fall Short?
- Annual sales declines of 1.8% for the past three years show its products struggled to connect with the market
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Commoditized inventory, bad unit economics, and high competition are reflected in its low gross margin of 34.3%
Academy Sports’s stock price of $58.68 implies a valuation ratio of 9.3x forward P/E. If you’re considering ASO for your portfolio, see our FREE research report to learn more.
Iridium (IRDM)
Consensus Price Target: $30.38 (-27.5% implied return)
With a constellation of 66 low-earth orbit satellites providing coverage to every inch of the planet, Iridium Communications (NASDAQ: IRDM) operates a global satellite network that provides voice and data services to customers in remote areas where traditional telecommunications are unavailable.
Why Do We Think Twice About IRDM?
- 5% annual revenue growth over the last two years was slower than its business services peers
- Estimated sales growth of 1.7% for the next 12 months implies demand will slow from its two-year trend
- Free cash flow margin shrank by 7.3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $41.91 per share, Iridium trades at 36.7x forward P/E. Dive into our free research report to see why there are better opportunities than IRDM.
One Stock to Buy:
Remitly (RELY)
Consensus Price Target: $21.56 (7.2% implied return)
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ: RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Are We Backing RELY?
- Has the opportunity to boost monetization through new features and premium offerings as its active customers have grown by 29.2% annually over the last two years
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 108% outpaced its revenue gains
- Free cash flow margin expanded by 34.7 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Remitly is trading at $20.10 per share, or 10.9x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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.
