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.
Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two where the skepticism is well-placed.
Two Stocks to Sell:
Walgreens (WBA)
Consensus Price Target: $12.41 (9.6% implied return)
Primarily offering prescription medicine, health, and beauty products, Walgreens Boots Alliance (NASDAQ: WBA) is a pharmacy chain formed through the 2014 major merger of American company Walgreens and European company Alliance Boots.
Why Do We Think WBA Will Underperform?
- Sizable revenue base leads to growth challenges as its 2.9% annual revenue increases over the last six years fell short of other consumer retail companies
- Gross margin of 18% is an output of its commoditized inventory
- High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $11.33 per share, Walgreens trades at 7.5x forward P/E. Check out our free in-depth research report to learn more about why WBA doesn’t pass our bar.
Peoples Bancorp (PEBO)
Consensus Price Target: $32.83 (9.7% implied return)
Founded in 1902 in Ohio and expanding through both organic growth and acquisitions, Peoples Bancorp (NASDAQ: PEBO) is a financial holding company that provides banking, insurance, equipment leasing, and investment services to consumers and businesses.
Why Is PEBO Not Exciting?
- Projected net interest income is flat for the next 12 months, implying demand will slow from its four-year trend
- Products and services are facing profitability challenges during this cycle, as seen in its flat tangible book value per share over the last five years
- High interest payments compared to its earnings raise concerns about its ability to service its debt consistently
Peoples Bancorp’s stock price of $29.92 implies a valuation ratio of 0.9x forward P/B. Read our free research report to see why you should think twice about including PEBO in your portfolio.
One Stock to Buy:
GE Aerospace (GE)
Consensus Price Target: $241.01 (2.1% implied return)
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
Why Should You Buy GE?
- Impressive 20.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Robust free cash flow margin of 16.2% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business
- Improving returns on capital reflect management’s ability to monetize investments
GE Aerospace is trading at $235.96 per share, or 42.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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.
