
2 Hated Stocks that Deserve a Second Chance and 1 to Think Twice About
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 are two stocks poised to prove Wall Street wrong and one where the skepticism is well-placed.
One Stock to Sell:
Torrid (CURV)
Consensus Price Target: $4.90 (11.4% implied return)
Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE:CURV) is a plus-size women’s apparel and accessories retailer.
Why Do We Steer Clear of CURV?
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Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
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Smaller revenue base of $1.10 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
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Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
Torrid is trading at $4.81 per share, or 26.5x forward price-to-earnings. Read our free research report to see why you should think twice about including CURV in your portfolio, it’s free .
Two Stocks to Watch:
CSW (CSWI)
Consensus Price Target: $401.80 (8% implied return)
With over two centuries of combined operations manufacturing and supplying, CSW (NASDAQ:CSWI) offers special chemicals, coatings, sealants, and lubricants for various industries.
Why Are We Bullish on CSWI?
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Annual revenue growth of 17.8% over the past five years was outstanding, reflecting market share gains this cycle
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Incremental sales significantly boosted profitability as its annual earnings per share growth of 21.9% over the last two years outstripped its revenue performance
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Robust free cash flow margin of 15% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute
At $312.89 per share, CSW trades at 33.6x forward price-to-earnings. Is now a good time to buy? See for yourself in our full research report, it’s free .
Broadridge (BR)
Consensus Price Target: $226.89 (5.6% implied return)
Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.