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 is one stock where you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
Enpro (NPO)
Consensus Price Target: $241 (5.4% implied return)
Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE: NPO) designs, manufactures, and sells products used for machinery in various industries.
Why Does NPO Fall Short?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Flat earnings per share over the last two years lagged its peers
- Low returns on capital reflect management’s struggle to allocate funds effectively
Enpro’s stock price of $228.57 implies a valuation ratio of 29x forward P/E. Check out our free in-depth research report to learn more about why NPO doesn’t pass our bar.
Trinity (TRN)
Consensus Price Target: $28.50 (-0.2% implied return)
Operating under the trade name TrinityRail, Trinity (NYSE: TRN) is a provider of railcar products and services in North America.
Why Do We Pass on TRN?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2% annually over the last five years
- Estimated sales decline of 18.5% for the next 12 months implies a challenging demand environment
- 9.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
At $28.56 per share, Trinity trades at 6.2x forward EV-to-EBITDA. To fully understand why you should be careful with TRN, check out our full research report (it’s free).
One Stock to Watch:
Coupang (CPNG)
Consensus Price Target: $34.18 (5.3% implied return)
Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE: CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".
Why Are We Fans of CPNG?
- Active Customers have increased by an average of 11.8% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 32% over the last three years outstripped its revenue performance
- Free cash flow margin jumped by 8 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Coupang is trading at $32.46 per share, or 29.6x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 Exlservice (+354% 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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