1 Unpopular Stock That Deserves Some Love and 2 We Avoid

Barchart·06/15/2026 03:52:16

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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two where the outlook is warranted.

Two Industrials Stocks to Sell:

Custom Truck One Source (CTOS)

Consensus Price Target: $11.50 (5.7% implied return)

Inspired by a family gas station, Custom Truck One Source (NYSE:CTOS) is a distributor of trucks and heavy equipment.

Why Are We Wary of CTOS?

1. Muted 4.3% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
2. Earnings per share have contracted by 45.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

Custom Truck One Source’s stock price of $10.88 implies a valuation ratio of 64.4x forward P/E. To fully understand why you should be careful with CTOS, check out our full research report (it’s free).

Trex (TREX)

Consensus Price Target: $47.95 (5% implied return)

Addressing the demand for aesthetically-pleasing and unique outdoor living spaces, Trex Company (NYSE:TREX) makes wood-alternative decking, railing, and patio furniture.

Why Is TREX Risky?

1. Sales tumbled by 2.1% annually over the last two years, showing market trends are working against it during this cycle
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 8 percentage points
3. Eroding returns on capital suggest its historical profit centers are aging

At $45.65 per share, Trex trades at 27.6x forward P/E. If you’re considering TREX for your portfolio, see our FREE research report to learn more.

One Industrials Stock to Buy:

Sterling (STRL)

Consensus Price Target: $941.17 (9.1% implied return)

Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ:STRL) provides civil infrastructure construction.

Why Do We Love STRL?

1. Annual revenue growth of 19.8% over the past two years was outstanding, reflecting market share gains this cycle
2. STRL is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
3. Returns on capital are climbing as management makes more lucrative bets

Sterling is trading at $863 per share, or 43.7x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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