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 where the outlook is warranted.
One Stock to Sell:
Genesco (GCO)
Consensus Price Target: $32.67 (1.6% implied return)
Spanning a broad range of styles, brands, and prices, Genesco (NYSE: GCO) sells footwear, apparel, and accessories through multiple brands and banners.
Why Do We Steer Clear of GCO?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its stores
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- High net-debt-to-EBITDA ratio of 8× could force the company to raise capital at unfavorable terms if market conditions deteriorate
At $32.14 per share, Genesco trades at 17.3x forward P/E. To fully understand why you should be careful with GCO, check out our full research report (it’s free).
Two Stocks to Watch:
Centene (CNC)
Consensus Price Target: $33.94 (3% implied return)
Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE: CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.
Why Are We Fans of CNC?
- 14.2% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
- Massive revenue base of $178.2 billion gives it meaningful leverage when negotiating reimbursement rates
- Improving returns on capital suggest its past investments are beginning to deliver value
Centene is trading at $32.95 per share, or 8.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Moelis (MC)
Consensus Price Target: $78.60 (3.6% implied return)
Founded in 2007 by veteran banker Ken Moelis during the lead-up to the financial crisis, Moelis & Company (NYSE: MC) is an independent investment bank that provides strategic and financial advisory services to corporations, financial sponsors, governments, and sovereign wealth funds.
Why Do We Watch MC?
- Annual revenue growth of 31.7% over the last two years was superb and indicates its market share increased during this cycle
- Additional sales over the last two years increased its profitability as the 86.4% annual growth in its earnings per share outpaced its revenue
- ROE punches in at 45%, illustrating management’s expertise in identifying profitable investments
Moelis’s stock price of $75.90 implies a valuation ratio of 29.8x forward P/E. Is now a good 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 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
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