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. That said, here is one stock poised to prove Wall Street wrong and two where the outlook is warranted.

Two Stocks to Sell:

B&G Foods (BGS)

Consensus Price Target: $4.50 (6.6% implied return)

Started as a small grocery store in New York City, B&G Foods (NYSE: BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.

Why Do We Steer Clear of BGS?

1. Annual sales declines of 3.9% for the past three years show its products struggled to connect with the market
2. Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 27.2% annually, worse than its revenue
3. High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $4.22 per share, B&G Foods trades at 7.2x forward P/E. Read our free research report to see why you should think twice about including BGS in your portfolio.

Figs (FIGS)

Consensus Price Target: $6.42 (-6.4% implied return)

Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE: FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.

Why Are We Out on FIGS?

1. Demand for its offerings was relatively low as its number of active customers has underwhelmed
2. Projected 3.9 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Figs’s stock price of $6.86 implies a valuation ratio of 121.5x forward P/E. Check out our free in-depth research report to learn more about why FIGS doesn’t pass our bar.

One Stock to Buy:

Comfort Systems (FIX)

Consensus Price Target: $767.20 (9.8% implied return)

Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.

Why Do We Love FIX?

1. Backlog has averaged 29.5% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 69.7% exceeded its revenue gains over the last two years
3. Returns on capital are growing as management capitalizes on its market opportunities

Comfort Systems is trading at $698.42 per share, or 34.5x 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).

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