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 poised to prove Wall Street wrong and two where the skepticism is well-placed.
Two Stocks to Sell:
Texas Instruments (TXN)
Consensus Price Target: $205.73 (2.3% implied return)
Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ: TXN) is the world’s largest producer of analog semiconductors.
Why Is TXN Not Exciting?
- Sales tumbled by 5.9% annually over the last two years, showing market trends are working against its favor during this cycle
- Efficiency has decreased over the last five years as its operating margin fell by 11.4 percentage points
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 29.7 percentage points
At $201.14 per share, Texas Instruments trades at 33x forward P/E. Dive into our free research report to see why there are better opportunities than TXN.
Steven Madden (SHOO)
Consensus Price Target: $28.13 (3.7% implied return)
As seen in the infamous Wolf of Wall Street movie, Steven Madden (NASDAQ: SHOO) is a fashion brand famous for its trendy and innovative footwear, appealing to a young and style-conscious audience.
Why Are We Hesitant About SHOO?
- Lackluster 9.4% annual revenue growth over the last two years indicates the company is losing ground to competitors
- Low free cash flow margin of 7.9% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Eroding returns on capital suggest its historical profit centers are aging
Steven Madden is trading at $27.13 per share, or 16.4x forward P/E. If you’re considering SHOO for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Frost Bank (CFR)
Consensus Price Target: $134.31 (6.4% implied return)
Tracing its roots back to 1868 when it was founded during Texas's post-Civil War reconstruction era, Cullen/Frost Bankers (NYSE: CFR) operates Frost Bank, a Texas-based financial institution providing commercial and consumer banking, wealth management, and insurance services.
Why Should CFR Be on Your Watchlist?
- Annual net interest income growth of 12.1% over the last five years was superb and indicates its market share increased during this cycle
- Net interest margin increased by 30 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
- Annual tangible book value per share growth of 25% over the last two years was superb and indicates its capital strength increased during this cycle
Frost Bank’s stock price of $126.23 implies a valuation ratio of 1.9x 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
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).
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