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.

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. Keeping that in mind, here is one stock poised to prove Wall Street wrong and two where the skepticism is well-placed.

Two Stocks to Sell:

Brookdale (BKD)

Consensus Price Target: $8.25 (-9.4% implied return)

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE: BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.

Why Are We Out on BKD?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.6% annually over the last five years
2. Earnings per share decreased by more than its revenue over the last five years, partly because it diluted shareholders
3. High net-debt-to-EBITDA ratio of 12× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Brookdale is trading at $9.11 per share, or 6.2x forward EV-to-EBITDA. To fully understand why you should be careful with BKD, check out our full research report (it’s free for active Edge members).

S&T Bancorp (STBA)

Consensus Price Target: $40.40 (6.4% implied return)

Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp (NASDAQ: STBA) is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.

Why Does STBA Give Us Pause?

1. Annual net interest income growth of 4.3% over the last five years was below our standards for the banking sector
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 6.3%
3. Net interest margin shrank by 33.7 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive

At $37.98 per share, S&T Bancorp trades at 1x forward P/B. If you’re considering STBA for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Nelnet (NNI)

Consensus Price Target: $130 (0.2% implied return)

Starting as a student loan servicer in the 1970s and evolving through the changing landscape of education finance, Nelnet (NYSE: NNI) provides student loan servicing, education technology, payment processing, and banking services while managing a portfolio of education loans.

Why Are We Bullish on NNI?

1. Annual revenue growth of 18% over the past two years was outstanding, reflecting market share gains this cycle
2. Share buybacks catapulted its annual earnings per share growth to 101%, which outperformed its revenue gains over the last two years
3. ROE of 10.6% shows management can invest its resources competently

Nelnet’s stock price of $129.80 implies a valuation ratio of 15.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.

Don’t let fear keep you from great opportunities and take a look at 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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