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 is one stock where you should be greedy instead of fearful and two facing legitimate challenges.
Two Stocks to Sell:
United Parks & Resorts (PRKS)
Consensus Price Target: $43.70 (-9.8% implied return)
Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE: PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.
Why Do We Steer Clear of PRKS?
- Sluggish trends in its visitors suggest customers aren’t adopting its solutions as quickly as the company hoped
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 12.1% for the last two years
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
United Parks & Resorts’s stock price of $48.43 implies a valuation ratio of 10.8x forward P/E. Check out our free in-depth research report to learn more about why PRKS doesn’t pass our bar.
OceanFirst Financial (OCFC)
Consensus Price Target: $21.33 (12% implied return)
Tracing its roots back to 1902 when it began serving coastal New Jersey communities, OceanFirst Financial (NASDAQ: OCFC) operates as a regional bank holding company that provides commercial and consumer banking services primarily in New Jersey and surrounding metropolitan areas.
Why Is OCFC Risky?
- 3.8% annual net interest income growth over the last five years was slower than its banking peers
- Earnings per share fell by 4.9% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Tangible book value per share is projected to decrease by 1.4% over the next 12 months as capital erosion continues
At $19.06 per share, OceanFirst Financial trades at 0.8x forward P/B. To fully understand why you should be careful with OCFC, check out our full research report (it’s free).
One Stock to Watch:
Valmont (VMI)
Consensus Price Target: $545.25 (-1.8% implied return)
Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE: VMI) provides engineered products and infrastructure services for the agricultural industry.
Why Are We Fans of VMI?
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Earnings per share grew by 57.6% annually over the last two years, massively outpacing its peers
- Free cash flow margin jumped by 10.2 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Valmont is trading at $555.43 per share, or 2.5x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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.
