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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. 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:
OPENLANE (OPLN)
Consensus Price Target: $39 (6.8% implied return)
Facilitating the sale of approximately 1.3 million used vehicles in 2023, OPENLANE (NYSE: OPLN) operates digital marketplaces that connect sellers and buyers of used vehicles across North America and Europe, facilitating wholesale transactions.
Why Does OPLN Fall Short?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital on unfavorable terms if market conditions deteriorate
OPENLANE is trading at $36.52 per share, or 25.9x forward P/E. To fully understand why you should be careful with OPLN, check out our full research report (it’s free).
Two Stocks to Buy:
KLA Corporation (KLAC)
Consensus Price Target: $1,855 (-11.6% implied return)
Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ: KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
Why Should You Buy KLAC?
- Impressive 15.2% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Highly efficient business model is illustrated by its impressive 40% operating margin, and its operating leverage amplified its profits over the last five years
- Strong free cash flow margin of 30.5% enables it to reinvest or return capital consistently
KLA Corporation’s stock price of $2,098 implies a valuation ratio of 45.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Curtiss-Wright (CW)
Consensus Price Target: $788.17 (6.1% implied return)
Formed from a merger of 12 companies, Curtiss-Wright (NYSE: CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.
Why Will CW Outperform?
- Annual revenue growth of 11% over the last two years was superb and indicates its market share increased during this cycle
- Share buybacks catapulted its annual earnings per share growth to 18.9%, which outperformed its revenue gains over the last two years
- Free cash flow margin jumped by 6.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $742.78 per share, Curtiss-Wright trades at 47x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
