When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two facing legitimate challenges.
Two Stocks to Sell:
Amkor (AMKR)
Consensus Price Target: $22.29 (9.8% implied return)
Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ: AMKR) provides outsourced packaging and testing for semiconductors.
Why Do We Pass on AMKR?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.1% annually over the last two years
- Gross margin of 14.5% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Already-low operating margin of 6.9% fell over the last five years, and the smaller profit dollars make it harder to react to unexpected market developments
Amkor’s stock price of $20.30 implies a valuation ratio of 11.9x forward P/E. Check out our free in-depth research report to learn more about why AMKR doesn’t pass our bar.
FOX (FOXA)
Consensus Price Target: $56.90 (5.7% implied return)
Founded in 1915, Fox (NASDAQ: FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.
Why Should You Sell FOXA?
- Annual sales growth of 3.9% over the last two years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
- Sales are projected to tank by 4.3% over the next 12 months as demand evaporates
FOX is trading at $53.82 per share, or 13.6x forward P/E. Dive into our free research report to see why there are better opportunities than FOXA.
One Stock to Watch:
BancFirst (BANF)
Consensus Price Target: $121 (-1.8% implied return)
Operating as a "super community bank" with a decentralized management approach that emphasizes local responsiveness, BancFirst Corporation (NASDAQ: BANF) operates as a financial holding company providing commercial banking services to retail customers and small to medium-sized businesses primarily in Oklahoma and Texas.
Why Is BANF on Our Radar?
- Annual net interest income growth of 10.2% over the last four years beat the sector average and underscores the value of its loans
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 11.5% outpaced its revenue gains
- Annual tangible book value per share growth of 11.3% over the past five years was outstanding, reflecting strong capital retention this cycle
At $123.21 per share, BancFirst trades at 2.3x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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 Growth Stocks for this month. 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 Exlservice (+354% 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.
