Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.

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

Two Stocks to Sell:

CarGurus (CARG)

Consensus Price Target: $38.67 (2.4% implied return)

Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ: CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.

Why Are We Hesitant About CARG?

1. Products and services have few die-hard fans as sales have declined by 15.1% annually over the last three years
2. Modest 1.7% annual growth in paying dealers over the last two years indicates potential challenges in customer acquisition and retention
3. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.4%

CarGurus is trading at $37.76 per share, or 12.2x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than CARG.

Heartland Express (HTLD)

Consensus Price Target: $9.20 (10.3% implied return)

Founded by the son of a trucker, Heartland Express (NASDAQ: HTLD) offers full-truckload deliveries across the United States and Mexico.

Why Should You Dump HTLD?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 14.2% annually over the last two years
2. Free cash flow margin shrank by 12.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Heartland Express’s stock price of $8.34 implies a valuation ratio of 7.7x forward EV-to-EBITDA. To fully understand why you should be careful with HTLD, check out our full research report (it’s free).

One Stock to Buy:

American Express (AXP)

Consensus Price Target: $328.99 (-0.3% implied return)

Recognizable by its iconic green logo and the slogan "Don't leave home without it," American Express (NYSE: AXP) is a global payments company that issues credit and charge cards, processes merchant transactions, and offers travel and lifestyle benefits to consumers and businesses.

Why Is AXP a Top Pick?

1. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 31.6% exceeded its revenue gains over the last five years
2. Annual tangible book value per share growth of 13.1% over the last two years was superb and indicates its capital strength increased during this cycle
3. ROE punches in at 32.1%, illustrating management’s expertise in identifying profitable investments

At $329.90 per share, American Express trades at 20.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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).

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