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.

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 are two stocks poised to prove Wall Street wrong and one where the outlook is warranted.

One Stock to Sell:

AMN Healthcare Services (AMN)

Consensus Price Target: $20.57 (-2.1% implied return)

With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE: AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States.

Why Is AMN Risky?

1. Declining travelers on assignment over the past two years imply it may need to invest in improvements to get back on track
2. Earnings per share fell by 8.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

AMN Healthcare Services is trading at $21.01 per share, or 23.9x forward P/E. Check out our free in-depth research report to learn more about why AMN doesn’t pass our bar.

Two Stocks to Watch:

Guidewire Software (GWRE)

Consensus Price Target: $268.38 (7% implied return)

With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE: GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics.

Why Do We Like GWRE?

1. Average billings growth of 21.2% over the last year enhances its liquidity and shows there is steady demand for its products
2. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
3. Robust free cash flow margin of 23.3% gives it many options for capital deployment

At $250.80 per share, Guidewire Software trades at 15.6x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Yum! Brands (YUM)

Consensus Price Target: $161.64 (12.8% implied return)

Spun off as an independent company from PepsiCo, Yum! Brands (NYSE: YUM) is a multinational corporation that owns KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill.

Why Are We Fans of YUM?

1. Fast expansion of new restaurants indicates an aggressive approach to attacking untapped market opportunities
2. Excellent operating margin of 31.9% highlights the efficiency of its business model
3. YUM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Yum! Brands’s stock price of $143.25 implies a valuation ratio of 22.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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-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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