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2 Unpopular Stocks That Deserve Some Love and 1 That Underwhelm

CVGW 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.

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 are two stocks poised to prove Wall Street wrong and one facing legitimate challenges.

One Stock to Sell:

Calavo (CVGW)

Consensus Price Target: $27 (4.7% implied return)

A trailblazer in the avocado industry, Calavo Growers (NASDAQ: CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.

Why Do We Steer Clear of CVGW?

  1. Annual sales declines of 16.3% for the past three years show its products struggled to connect with the market
  2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
  3. Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 10.4%

Calavo’s stock price of $25.80 implies a valuation ratio of 17.7x forward P/E. Dive into our free research report to see why there are better opportunities than CVGW.

Two Stocks to Buy:

DXP (DXPE)

Consensus Price Target: $139.50 (-0.2% implied return)

Founded during the emergence of Big Oil in Texas, DXP (NASDAQ: DXPE) provides pumps, valves, and other industrial components.

Why Will DXPE Beat the Market?

  1. Annual revenue growth of 14.9% over the past five years was outstanding, reflecting market share gains this cycle
  2. Operating margin expanded by 5.2 percentage points over the last five years as it scaled and became more efficient
  3. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

At $139.73 per share, DXP trades at 22.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Devon Energy (DVN)

Consensus Price Target: $56.04 (12.4% implied return)

With operations spanning from the oil-rich Delaware Basin to the Bakken formation of North Dakota, Devon Energy (NYSE: DVN) explores for and produces oil, natural gas, and natural gas liquids from wells drilled across the United States.

Why Should You Buy DVN?

  1. Annual revenue growth of 27.8% over the last five years was superb and indicates its market share increased during this cycle
  2. Dominant market position is represented by its $17.02 billion in revenue and gives it fixed cost leverage when sales grow
  3. Strong free cash flow margin of 22.3% enables it to reinvest or return capital consistently

Devon Energy is trading at $49.87 per share, or 10.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

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 meeting 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 (+1,326% between June 2020 and June 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.

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