2 Unpopular Stocks That Deserve Some Love and 1 We Brush Off

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.

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. Keeping that in mind, here are two stocks where Wall Street’s pessimism is creating a buying opportunity and one where the outlook is warranted.

One Stock to Sell:

Valmont (VMI)

Consensus Price Target: $415 (4.4% implied return)

Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE:VMI) provides engineered products and infrastructure services for the agricultural industry.

Why Are We Hesitant About VMI?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Projected sales growth of 2.9% for the next 12 months suggests sluggish demand
3. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 6.8% annually

Valmont is trading at $397.39 per share, or 23.8x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including VMI in your portfolio.

Two Stocks to Buy:

Shopify (SHOP)

Consensus Price Target: $163.80 (6.7% implied return)

Starting with just three people selling snowboards online in 2004, Shopify (NYSE:SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.

Why Is SHOP a Good Business?

1. Billings have averaged 29.5% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
2. Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
3. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently

Shopify’s stock price of $153.50 implies a valuation ratio of 16.2x 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.

SPX Technologies (SPXC)

Consensus Price Target: $201.44 (11.5% implied return)

With roots dating back to 1912 as the Piston Ring Company, SPX Technologies (NYSE:SPXC) supplies specialized infrastructure equipment for HVAC systems and detection and measurement applications across industrial, commercial, and utility markets.

Why Should You Buy SPXC?

1. Market share has increased this cycle as its 12.5% annual revenue growth over the last two years was exceptional
2. Operating margin expanded by 8.1 percentage points over the last five years as it scaled and became more efficient
3. Earnings per share grew by 22.2% annually over the last two years, massively outpacing its peers

At $180.71 per share, SPX Technologies trades at 26.3x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.