1 Unpopular Stock That Deserves Some Love and 2 We Find Risky

RL Cover Image

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. That said, here is one stock where you should be greedy instead of fearful and two facing legitimate challenges.

Two Stocks to Sell:

Ralph Lauren (RL)

Consensus Price Target: $389.93 (8.2% implied return)

Originally founded as a necktie company, Ralph Lauren (NYSE: RL) is an iconic American fashion brand known for its classic and sophisticated style.

Why Should You Dump RL?

  1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
  2. Operating margin of 13.1% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
  3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 11.3% for the last two years

At $360.28 per share, Ralph Lauren trades at 23x forward P/E. Check out our free in-depth research report to learn more about why RL doesn’t pass our bar.

Leggett & Platt (LEG)

Consensus Price Target: $12.50 (3.3% implied return)

Founded in 1883, Leggett & Platt (NYSE: LEG) is a diversified manufacturer of products and components for various industries.

Why Should You Sell LEG?

  1. Flat sales over the last five years suggest it must innovate and find new ways to grow
  2. Poor free cash flow margin of 6.1% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Leggett & Platt is trading at $12.10 per share, or 11.3x forward P/E. If you’re considering LEG for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

EPAM (EPAM)

Consensus Price Target: $224 (1.6% implied return)

Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE: EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products.

Why Could EPAM Be a Winner?

  1. $5.30 billion in revenue allows it to spread its fixed costs across a wider base
  2. EPAM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
  3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

EPAM’s stock price of $220.46 implies a valuation ratio of 17.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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