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.
Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. That said, here are two stocks where Wall Street’s pessimism is creating a buying opportunity and one where the outlook is warranted.
One Stock to Sell:
JFrog (FROG)
Consensus Price Target: $44.44 (2.4% implied return)
Named after the founders' affinity for frogs, JFrog (NASDAQ: FROG) provides a software-as-a-service platform that makes developing and releasing software easier and faster, especially for large teams.
Why Is FROG Not Exciting?
- Rapid expansion strategy came at the expense of operating margin profitability
- Free cash flow margin is forecasted to shrink by 6.6 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
JFrog is trading at $43.39 per share, or 9.3x forward price-to-sales. Check out our free in-depth research report to learn more about why FROG doesn’t pass our bar.
Two Stocks to Watch:
TJX (TJX)
Consensus Price Target: $139.71 (10.3% implied return)
Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE: TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.
Why Should TJX Be on Your Watchlist?
- Store expansion strategy is justified by its healthy same-store sales
- Comparable store sales rose by 4.4% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Massive revenue base of $56.99 billion makes up for its weaker gross margin and makes it a household name that influences purchasing decisions
At $126.70 per share, TJX trades at 27.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Butterfield Bank (NTB)
Consensus Price Target: $46 (6.4% implied return)
Dating back to 1784 as one of the oldest banking institutions in the Western Hemisphere, Butterfield Bank (NYSE: NTB) provides banking, wealth management, and trust services to individuals and businesses across select offshore financial centers including Bermuda, Cayman Islands, and the Channel Islands.
Why Are We Positive On NTB?
- Annual net interest income growth of 30.8% over the last four years was superb and indicates its market share increased during this cycle
- Capital strength will likely rise over the next 12 months as its expected tangible book value per share growth of 16.3% is robust
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Butterfield Bank’s stock price of $43.23 implies a valuation ratio of 1.6x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free.
