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1 of Wall Street’s Favorite Stock for Long-Term Investors and 2 That Underwhelm

ATRO Cover Image

The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here is one stock where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

ABM (ABM)

Consensus Price Target: $51.43 (32.8% implied return)

With roots dating back to 1909 as a window washing company, ABM Industries (NYSE: ABM) provides integrated facility management, infrastructure, and mobility solutions across various sectors including commercial, manufacturing, education, and aviation.

Why Are We Wary of ABM?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Earnings per share have contracted by 2.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
  3. Low free cash flow margin of 1.9% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

ABM is trading at $38.72 per share, or 9.5x forward P/E. To fully understand why you should be careful with ABM, check out our full research report (it’s free).

Thermo Fisher (TMO)

Consensus Price Target: $661.40 (33.6% implied return)

With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific (NYSE: TMO) provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide.

Why Does TMO Fall Short?

  1. The company has faced growth challenges as its 2% annual revenue increases over the last two years fell short of other healthcare companies
  2. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  3. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 8.3 percentage points

At $495.00 per share, Thermo Fisher trades at 20.1x forward P/E. Check out our free in-depth research report to learn more about why TMO doesn’t pass our bar.

One Stock to Buy:

Astronics (ATRO)

Consensus Price Target: $87.58 (27.9% implied return)

Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ: ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.

Why Are We Backing ATRO?

  1. Impressive 11.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Free cash flow margin expanded by 7.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
  3. Improving returns on capital suggest its past investments are beginning to deliver value

Astronics’s stock price of $68.45 implies a valuation ratio of 26.8x forward P/E. Is now the time to initiate a position? Find out in our full 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.

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