1 Unpopular Stock That Deserves Some Love and 2 Facing Challenges
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. That said, here is one stock where you should be greedy instead of fearful and two facing legitimate challenges.
Consensus Price Target: $58.50 (-12.8% implied return)
Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems.
Why Does ALNT Worry Us?
Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.2% annually over the last two years
Performance over the past two years was negatively impacted by new share issuances as its earnings per share dropped by 5.7% annually, worse than its revenue
Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up
Allient is trading at $67.11 per share, or 27.8x forward P/E. If you’re considering ALNT for your portfolio, see our FREE research report to learn more.
Consensus Price Target: $71.60 (11.6% implied return)
Spun out of Cummins in 2023 after 65 years as part of the engine maker, Atmus Filtration Technologies (NYSE:ATMU) manufactures filters for trucks, construction equipment, and agriculture machinery to reduce emissions and protect engines.
Why Are We Wary of ATMU?
Annual revenue growth of 4.1% over the last two years was below our standards for the industrials sector
Gross margin of 26.3% is below its competitors, leaving less money to invest in areas like marketing and R&D
Free cash flow margin shrank by 3.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Atmus Filtration Technologies’s stock price of $64.17 implies a valuation ratio of 21.9x forward P/E. Check out our free in-depth research report to learn more about why ATMU doesn’t pass our bar.
Consensus Price Target: $430.55 (3.7% implied return)
Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE:DY) builds and maintains telecommunications infrastructure.
Why Should You Buy DY?
Annual revenue growth of 11.8% over the past two years was outstanding, reflecting market share gains this cycle
Operating margin expanded by 5.9 percentage points over the last five years as it scaled and became more efficient
Share repurchases over the last five years enabled its annual earnings per share growth of 33.3% to outpace its revenue gains
At $415.03 per share, Dycom trades at 31x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.