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.
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. That said, here are two stocks where you should be greedy instead of fearful and one facing legitimate challenges.
One Stock to Sell:
L.B. Foster (FSTR)
Consensus Price Target: $32.50 (3.5% implied return)
Founded with a $2,500 loan, L.B. Foster (NASDAQ: FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.
Why Does FSTR Give Us Pause?
- New orders were hard to come by as its average backlog growth of 4.4% over the past two years underwhelmed
- Flat earnings per share over the last five years underperformed the sector average
- ROIC of 3.7% reflects management’s challenges in identifying attractive investment opportunities
At $31.41 per share, L.B. Foster trades at 21.1x forward P/E. Check out our free in-depth research report to learn more about why FSTR doesn’t pass our bar.
Two Stocks to Watch:
Cohen & Steers (CNS)
Consensus Price Target: $72 (7.6% implied return)
Founded in 1986 as a pioneer in real estate investment trusts (REITs), Cohen & Steers (NYSE: CNS) is an investment manager specializing in real estate securities, infrastructure, real assets, and preferred securities for institutional and individual investors.
Why Should CNS Be on Your Watchlist?
- Balance sheet strength has increased this cycle as its 20.1% annual tangible book value per share growth over the last two years was exceptional
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Cohen & Steers’s stock price of $66.89 implies a valuation ratio of 20.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Kinsale Capital Group (KNSL)
Consensus Price Target: $422.40 (10.2% implied return)
Founded in 2009 during the aftermath of the financial crisis when many insurers were retreating from riskier markets, Kinsale Capital Group (NYSE: KNSL) is an insurance company that specializes in writing policies for hard-to-place, unusual, or high-risk businesses that standard insurers typically avoid.
Why Do We Love KNSL?
- Market penetration was impressive this cycle as its net premiums earned expanded by 21.2% annually over the last two years
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 43.9% over the last five years outstripped its revenue performance
- Impressive 34.4% annual book value per share growth over the last two years indicates it’s building equity value this cycle
Kinsale Capital Group is trading at $383.43 per share, or 4x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
