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 are two stocks where you should be greedy instead of fearful and one facing legitimate challenges.

One Stock to Sell:

Fortrea (FTRE)

Consensus Price Target: $6.66 (-1.9% implied return)

Spun off from Labcorp in 2023 to focus exclusively on clinical research services, Fortrea (NASDAQ: FTRE) is a contract research organization that helps pharmaceutical, biotech, and medical device companies develop and bring their products to market through clinical trials and support services.

Why Should You Dump FTRE?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.6% annually over the last two years
2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Fortrea’s stock price of $6.79 implies a valuation ratio of 13.3x forward P/E. To fully understand why you should be careful with FTRE, check out our full research report (it’s free).

Two Stocks to Buy:

Roblox (RBLX)

Consensus Price Target: $97.33 (-18.2% implied return)

Best known for its wide assortment of user-generated content, Roblox (NYSE: RBLX) is an online gaming platform and game creation system.

Why Is RBLX a Good Business?

1. Daily Active Users have increased by an average of 22.1% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
2. Demand for the next 12 months is expected to accelerate above its three-year trend as Wall Street forecasts robust revenue growth of 25.3%
3. Highly efficient business model is illustrated by its impressive 20.5% EBITDA margin

At $118.95 per share, Roblox trades at 70.2x forward EV/EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.

Live Oak Bancshares (LOB)

Consensus Price Target: $35 (3.2% implied return)

Founded during the 2008 financial crisis with a vision to reimagine small business banking through technology, Live Oak Bancshares (NYSE: LOB) is a bank holding company that specializes in providing online banking services and SBA-guaranteed loans to small businesses across targeted industries nationwide.

Why Will LOB Outperform?

1. Annual net interest income growth of 20.9% over the last five years was superb and indicates its market share increased during this cycle
2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 51.2% annually, topping its revenue gains
3. Balance sheet strength has increased this cycle as its 11.4% annual tangible book value per share growth over the last five years was exceptional

Live Oak Bancshares is trading at $33.93 per share, or 1.4x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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 Kadant (+351% 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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