Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.

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 where the skepticism is well-placed.

Two Stocks to Sell:

Kohl's (KSS)

Consensus Price Target: $10.07 (-25.3% implied return)

Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE: KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.

Why Is KSS Risky?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
2. Sales are projected to tank by 5.2% over the next 12 months as its demand continues evaporating
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Kohl’s stock price of $13.48 implies a valuation ratio of 50.7x forward P/E. To fully understand why you should be careful with KSS, check out our full research report (it’s free).

Topgolf Callaway (MODG)

Consensus Price Target: $10.50 (10.6% implied return)

Formed between the merger of Callaway and Topgolf, Topgolf Callaway (NYSE: MODG) sells golf equipment and operates technology-driven golf entertainment venues.

Why Should You Dump MODG?

1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
2. Earnings per share fell by 39.2% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $9.49 per share, Topgolf Callaway trades at 3.8x forward EV-to-EBITDA. If you’re considering MODG for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

HEICO (HEI)

Consensus Price Target: $323.82 (4.9% implied return)

Founded in 1957, HEICO (NYSE: HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.

Why Is HEI a Good Business?

1. Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 9.7% over the past two years
2. Earnings per share grew by 25.2% annually over the last two years, massively outpacing its peers
3. Strong free cash flow margin of 17.5% enables it to reinvest or return capital consistently

HEICO is trading at $308.76 per share, or 66.1x 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 April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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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