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.
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. That said, here are two stocks poised to prove Wall Street wrong and one facing legitimate challenges.
One Stock to Sell:
Viking (VIK)
Consensus Price Target: $98.14 (-1.4% implied return)
From a single river cruise offering to a fleet of 96 vessels across multiple continents, Viking (NYSE: VIK) operates a fleet of small luxury cruise ships offering river, ocean, and expedition voyages focused on cultural enrichment and destination immersion.
Why Do We Avoid VIK?
- Muted 17.8% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 20.9% for the last two years
Viking is trading at $99.55 per share, or 30.1x forward P/E. To fully understand why you should be careful with VIK, check out our full research report (it’s free).
Two Stocks to Buy:
DXP (DXPE)
Consensus Price Target: $158.50 (2.2% implied return)
Founded during the emergence of Big Oil in Texas, DXP (NASDAQ: DXPE) provides pumps, valves, and other industrial components.
Why Is DXPE a Good Business?
- Annual revenue growth of 16.8% over the past five years was outstanding, reflecting market share gains this cycle
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.3% exceeded its revenue gains over the last two years
At $155.11 per share, DXP trades at 24.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Brown & Brown (BRO)
Consensus Price Target: $71.50 (3.2% implied return)
With roots dating back to 1939 and operations spanning 44 U.S. states and 14 countries, Brown & Brown (NYSE: BRO) is an insurance brokerage and risk management firm that markets and sells insurance products across property, casualty, and employee benefits sectors.
Why Are We Bullish on BRO?
- Estimated revenue growth of 11.2% for the next 12 months implies its momentum over the last two years will continue
- Earnings per share grew by 18.5% annually over the last five years, massively outpacing its peers
- BRO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Brown & Brown’s stock price of $69.28 implies a valuation ratio of 15.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
