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 facing legitimate challenges.
Two Stocks to Sell:
Cummins (CMI)
Consensus Price Target: $524.21 (0.2% implied return)
With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE: CMI) offers engines and power systems.
Why Are We Hesitant About CMI?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Sales are projected to be flat over the next 12 months and imply weak demand
- Waning returns on capital imply its previous profit engines are losing steam
Cummins’s stock price of $523.41 implies a valuation ratio of 21.9x forward P/E. If you’re considering CMI for your portfolio, see our FREE research report to learn more.
Hillenbrand (HI)
Consensus Price Target: $32 (0.5% implied return)
Hillenbrand, Inc. (NYSE: HI) is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.
Why Are We Out on HI?
- Sales tumbled by 2.7% annually over the last two years, showing market trends are working against its favor during this cycle
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
- Free cash flow margin dropped by 16.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
At $31.85 per share, Hillenbrand trades at 12.4x forward P/E. Check out our free in-depth research report to learn more about why HI doesn’t pass our bar.
One Stock to Buy:
JFrog (FROG)
Consensus Price Target: $69.22 (0.1% implied return)
Named after the amphibian that continuously evolves from egg to tadpole to adult, JFrog (NASDAQ: FROG) provides a platform that helps organizations securely create, store, manage, and distribute software packages across any system.
Why Is FROG a Good Business?
- Billings growth has averaged 22.9% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- FROG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
JFrog is trading at $69.18 per share, or 13.7x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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-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
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