1 Underappreciated Stock Worth Your Attention and 2 Encountering Obstacles

Wall Street’s Bearish Outlook: What You Need to Know

It’s uncommon for Wall Street analysts to issue negative outlooks on stocks, as financial firms often avoid criticizing companies that may be clients for other lucrative services like mergers and acquisitions. However, the stocks discussed here have received cautious forecasts.

At StockStory, we conduct our own thorough research to assess whether these pessimistic views are warranted. Below, we highlight one industrial stock that stands out as a buying opportunity, along with two others that are currently facing real headwinds.

Industrial Stocks to Consider Selling

Allient (ALNT)

Analyst Target Price: $58.50 (suggesting a potential decline of 12.8%)

Allient (NASDAQ: ALNT), established in 1962, specializes in designing and producing advanced motion control components and systems.

Key Concerns for ALNT

• Allient’s products and services are experiencing notable challenges in their target markets, with annual sales dropping by 3.2% over the past two years.
• The company’s earnings per share have fallen by 5.7% annually in the same period, a steeper decline than its revenue, partly due to new share issuances.
• Returns on capital have been weak, indicating management has struggled with effective capital allocation, and declining returns suggest previous profit sources are diminishing.

Currently, Allient trades at $67.11 per share, equating to a forward price-to-earnings ratio of 27.8.

Atmus Filtration Technologies (ATMU)

Analyst Target Price: $71.60 (implying an 11.6% upside)

Atmus Filtration Technologies (NYSE: ATMU) became an independent company in 2023 after decades as part of Cummins. It produces filtration solutions for trucks, construction, and agricultural equipment, helping reduce emissions and safeguard engines.

Why We’re Cautious on ATMU

• Revenue has grown at just 4.1% annually over the past two years, which is below the typical pace for industrial peers.
• With a gross margin of 26.3%, ATMU lags behind competitors, limiting its ability to invest in areas like marketing and research.
• Free cash flow margin has contracted by 3.4 percentage points over the last five years, indicating the company is using more capital to maintain its competitive position.

Atmus shares are priced at $64.17, reflecting a forward P/E of 21.9.

Industrial Stock Worth Buying

Dycom (DY)

Analyst Target Price: $430.55 (projected 3.7% return)

Dycom (NYSE: DY) partners with leading mobile carriers to construct and maintain telecom infrastructure.

Why DY Stands Out

• Dycom’s revenue has surged by 11.8% annually over the past two years, reflecting strong market share gains.
• The company’s operating margin has improved by 5.9 percentage points in the last five years, thanks to scaling and efficiency gains.
• Share buybacks have helped boost annual earnings per share by 33.3% over five years, outpacing revenue growth.

Dycom is currently valued at $415.03 per share, with a forward P/E of 31.

Even More Compelling Stock Picks

This year’s market rally has been driven by just four stocks, which together account for half of the S&P 500’s gains. Such concentration can make investors uneasy. While many chase the same popular names, savvy investors are seeking out high-quality opportunities that are overlooked and undervalued. Discover our top picks in the Top 6 Stocks for this week—a handpicked list of high-quality companies that have delivered a remarkable 244% return over the past five years (as of June 30, 2025).

Our 2020 selections included now-household names like Nvidia (up 1,326% from June 2020 to June 2025) and lesser-known firms such as Kadant, which achieved a 351% five-year return. Find your next standout investment with StockStory today.