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.
Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two where the skepticism is well-placed.
Two Stocks to Sell:
THOR Industries (THO)
Consensus Price Target: $86.42 (8.5% implied return)
Created through the acquisition and merger of various RV manufacturers, THOR Industries manufactures and sells a range of recreational vehicles, including motorhomes and travel trailers, catering to consumers seeking the freedom and comfort of the RV lifestyle.
Why Should You Sell THO?
- Sales tumbled by 17.4% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share have dipped by 13% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- Eroding returns on capital suggest its historical profit centers are aging
THOR Industries is trading at $79.62 per share, or 13.9x forward P/E. Check out our free in-depth research report to learn more about why THO doesn’t pass our bar.
Corning (GLW)
Consensus Price Target: $52.18 (8% implied return)
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE: GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Why Do We Think GLW Will Underperform?
- Sizable revenue base leads to growth challenges as its 1% annual revenue increases over the last two years fell short of other industrials companies
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4 percentage points
- Underwhelming 5.2% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging
Corning’s stock price of $48.31 implies a valuation ratio of 20.2x forward P/E. Read our free research report to see why you should think twice about including GLW in your portfolio.
One Stock to Buy:
H&R Block (HRB)
Consensus Price Target: $62 (7.3% implied return)
Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE: HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.
Why Do We Love HRB?
- Annual revenue growth of 30.5% over the past five years was outstanding, reflecting market share gains
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 56.7% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities
At $57.76 per share, H&R Block trades at 16.9x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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.
