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.

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 where Wall Street’s pessimism is creating a buying opportunity and two where the skepticism is well-placed.

Two Stocks to Sell:

Guidewire (GWRE)

Consensus Price Target: $243.54 (10.6% implied return)

Founded by two individuals involved in the development of leading procurement software Ariba, Guidewire (NYSE: GWRE) offers insurance companies a software-as-a-service platform to help sell their products and manage their workflows.

Why Are We Wary of GWRE?

1. Revenue increased by 12.6% annually over the last three years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
2. Steep infrastructure costs and weaker unit economics for a software company are reflected in its low gross margin of 61.9%

Guidewire’s stock price of $220.14 implies a valuation ratio of 14.5x forward price-to-sales. To fully understand why you should be careful with GWRE, check out our full research report (it’s free).

AbbVie (ABBV)

Consensus Price Target: $209.12 (8.6% implied return)

Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.

Why Does ABBV Fall Short?

1. Sales stagnated over the last two years and signal the need for new growth strategies
2. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
3. Costs have risen faster than its revenue over the last two years, causing its adjusted operating margin to decline by 9.2 percentage points

AbbVie is trading at $192.59 per share, or 15.1x forward P/E. Read our free research report to see why you should think twice about including ABBV in your portfolio.

One Stock to Watch:

Bentley (BSY)

Consensus Price Target: $51.61 (-7.9% implied return)

Founded by brothers Keith and Barry Bentley, Bentley Systems (NASDAQ: BSY) offers a software-as-a-service platform that addresses the lifecycle of infrastructure projects such as road networks, tunnel systems, and wastewater facilities.

Why Does BSY Stand Out?

1. Platform has decent utility and becomes more valuable over time, as seen in its 109% net revenue retention rate
2. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
3. Strong free cash flow margin of 31.5% enables it to reinvest or return capital consistently

At $56.01 per share, Bentley trades at 12.4x forward price-to-sales. 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 victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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).

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