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. Keeping that in mind, here are two stocks poised to prove Wall Street wrong and one where the skepticism is well-placed.
One Stock to Sell:
Clorox (CLX)
Consensus Price Target: $120.41 (9.8% implied return)
Founded in 1913 with bleach as the sole product offering, Clorox (NYSE: CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.
Why Does CLX Worry Us?
- Products have few die-hard fans as sales have declined by 1.3% annually over the last three years
- 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 decline of 1.1% over the next 12 months indicates demand will continue deteriorating
Clorox’s stock price of $109.63 implies a valuation ratio of 16.8x forward P/E. Read our free research report to see why you should think twice about including CLX in your portfolio.
Two Stocks to Buy:
O'Reilly (ORLY)
Consensus Price Target: $108.72 (10% implied return)
Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ: ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
Why Are We Bullish on ORLY?
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 3.5% growth over the past two years
- Highly efficient business model is illustrated by its impressive 19.5% operating margin
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
O'Reilly is trading at $98.85 per share, or 31.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Lululemon (LULU)
Consensus Price Target: $208.66 (21% implied return)
Originally serving yogis and hockey players, Lululemon (NASDAQ: LULU) is a designer, distributor, and retailer of athletic apparel for men and women.
Why Is LULU a Good Business?
- Same-store sales growth averaged 3.8% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Unique assortment of products and pricing power are reflected in its best-in-class gross margin of 58.6%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $172.51 per share, Lululemon trades at 14.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
