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.
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 where you should be greedy instead of fearful and two where the skepticism is well-placed.
Two Stocks to Sell:
Herbalife (HLF)
Consensus Price Target: $9.33 (3.7% implied return)
With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE:HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.
Why Does HLF Fall Short?
- Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.6%
- Issuance of new shares over the last three years caused its earnings per share to fall by 17.3% annually, even worse than its revenue declines
Herbalife is trading at $9 per share, or 4.1x forward P/E. Check out our free in-depth research report to learn more about why HLF doesn’t pass our bar.
Ingersoll Rand (IR)
Consensus Price Target: $90.33 (7.6% implied return)
Started with the invention of the steam drill, Ingersoll Rand (NYSE:IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.
Why Do We Think Twice About IR?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Projected sales growth of 6.3% for the next 12 months suggests sluggish demand
- ROIC of 5.2% reflects management’s challenges in identifying attractive investment opportunities
At $83.95 per share, Ingersoll Rand trades at 23.8x forward P/E. Dive into our free research report to see why there are better opportunities than IR.
One Stock to Buy:
Armstrong World (AWI)
Consensus Price Target: $195.67 (-0.6% implied return)
Started as a two-man shop dating back to the 1860s, Armstrong (NYSE:AWI) provides ceiling and wall products to commercial and residential spaces.
Why Are We Bullish on AWI?
- Annual revenue growth of 11.1% over the past two years was outstanding, reflecting market share gains this cycle
- Healthy operating margin of 24.7% shows it’s a well-run company with efficient processes, and its rise over the last five years was fueled by some leverage on its fixed costs
- Share buybacks catapulted its annual earnings per share growth to 19.5%, which outperformed its revenue gains over the last two years
Armstrong World’s stock price of $196.77 implies a valuation ratio of 26.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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).
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