When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. That said, here is one stock poised to prove Wall Street wrong and two where the skepticism is well-placed.
Two Stocks to Sell:
Advanced Energy (AEIS)
Consensus Price Target: $150.70 (-14.7% implied return)
Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ: AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.
Why Should You Dump AEIS?
- Annual sales declines of 5.9% for the past two years show its products and services struggled to connect with the market during this cycle
- Sales were less profitable over the last two years as its earnings per share fell by 9.9% annually, worse than its revenue declines
- Waning returns on capital imply its previous profit engines are losing steam
Advanced Energy’s stock price of $176.59 implies a valuation ratio of 31.6x forward P/E. Read our free research report to see why you should think twice about including AEIS in your portfolio.
HP (HPQ)
Consensus Price Target: $28.16 (-1.4% implied return)
Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.
Why Is HPQ Risky?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Projected sales growth of 1.5% for the next 12 months suggests sluggish demand
- Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 2% annually
At $28.55 per share, HP trades at 8.5x forward P/E. Dive into our free research report to see why there are better opportunities than HPQ.
One Stock to Watch:
LegalZoom (LZ)
Consensus Price Target: $11.64 (8.6% implied return)
Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ: LZ) offers online legal services and documentation assistance for individuals and businesses.
Why Does LZ Stand Out?
- Has the opportunity to boost monetization through new features and premium offerings as its subscription units have grown by 11.7% annually over the last two years
- Share buybacks catapulted its annual earnings per share growth to 177%, which outperformed its revenue gains over the last three years
- Free cash flow margin grew by 14.9 percentage points over the last few years, giving the company more chips to play with
LegalZoom is trading at $10.72 per share, or 10.9x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
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 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 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
