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. 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:

Kellanova (K)

Consensus Price Target: $83.40 (5.1% implied return)

With Corn Flakes as its first and most iconic product, Kellanova (NYSE: K) is a packaged foods company that is dominant in the cereal and snack categories.

Why Does K Fall Short?

1. Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
2. Anticipated sales growth of 1.6% for the next year implies demand will be shaky
3. Earnings per share have dipped by 3.5% annually over the past three years, which is concerning because stock prices follow EPS over the long term

Kellanova’s stock price of $79.34 implies a valuation ratio of 20.3x forward P/E. Check out our free in-depth research report to learn more about why K doesn’t pass our bar.

Malibu Boats (MBUU)

Consensus Price Target: $36.14 (9.5% implied return)

Founded in California in 1982, Malibu Boats (NASDAQ: MBUU) is a manufacturer of high-performance sports boats and luxury watercrafts.

Why Do We Avoid MBUU?

1. Performance surrounding its boats sold has lagged its peers
2. Earnings per share fell by 17.4% annually over the last five years while its revenue was flat, showing each sale was less profitable
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

At $33 per share, Malibu Boats trades at 11.1x forward P/E. Read our free research report to see why you should think twice about including MBUU in your portfolio.

One Stock to Buy:

Customers Bancorp (CUBI)

Consensus Price Target: $70.14 (12.5% implied return)

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE: CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Why Should You Buy CUBI?

1. Solid 9.8% annual net interest income growth over the last four years indicates its offerings are gaining share
2. Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 19.4% outpaced its revenue gains
3. Balance sheet strength has increased this cycle as its 18.7% annual tangible book value per share growth over the last five years was exceptional

Customers Bancorp is trading at $62.34 per share, or 1.1x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

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 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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