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.

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 poised to prove Wall Street wrong and two where the outlook is warranted.

Two Stocks to Sell:

American Outdoor Brands (AOUT)

Consensus Price Target: $16.50 (5% implied return)

Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ: AOUT) is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.

Why Are We Out on AOUT?

1. Sales tumbled by 7.1% annually over the last five years, showing consumer trends are working against it
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 5% for the last two years

American Outdoor Brands’s stock price of $15.71 implies a valuation ratio of 25.9x forward P/E. Check out our free in-depth research report to learn more about why AOUT doesn’t pass our bar.

CONMED (CNMD)

Consensus Price Target: $45.50 (-1.6% implied return)

With over five decades of experience in surgical innovation since its founding in 1970, CONMED (NYSE: CNMD) develops and manufactures medical devices and equipment for surgical procedures, specializing in orthopedic and general surgery products.

Why Is CNMD Not Exciting?

1. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
2. Modest revenue base of $1.37 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
3. Estimated sales growth of 1.9% for the next 12 months implies demand will slow from its two-year trend

CONMED is trading at $46.23 per share, or 10.5x forward P/E. To fully understand why you should be careful with CNMD, check out our full research report (it’s free).

One Stock to Watch:

EPAM (EPAM)

Consensus Price Target: $122.82 (4.7% 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 Do We Like EPAM?

1. Annual revenue growth of 13.1% over the last five years was superb and indicates its market share increased during this cycle
2. Earnings growth has easily exceeded the peer group average over the last five years as its EPS has compounded at 11.4% annually
3. ROIC punches in at 21%, illustrating management’s expertise in identifying profitable investments

At $117.33 per share, EPAM trades at 8.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.