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 is one stock poised to prove Wall Street wrong and two where the skepticism is well-placed.

Two Stocks to Sell:

Palo Alto Networks (PANW)

Consensus Price Target: $212.23 (3.7% implied return)

Founded in 2005 by cybersecurity engineer Nir Zuk, Palo Alto Networks (NASDAQ: PANW) makes hardware and software cybersecurity products that protect companies from cyberattacks, breaches, and malware threats.

Why Does PANW Fall Short?

1. Revenue increased by 19.7% annually over the last three years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
2. Customers had second thoughts about committing to its platform over the last year as its average billings growth of 3% underwhelmed

Palo Alto Networks’s stock price of $204.60 implies a valuation ratio of 14.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than PANW.

Herbalife (HLF)

Consensus Price Target: $8.67 (-12.8% implied return)

With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE: HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.

Why Are We Wary of HLF?

1. Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.6%
3. Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term

At $9.94 per share, Herbalife trades at 4.8x forward P/E. To fully understand why you should be careful with HLF, check out our full research report (it’s free).

One Stock to Watch:

First Financial Bankshares (FFIN)

Consensus Price Target: $39 (7.2% implied return)

With roots dating back to 1890 and a network spanning over 70 locations across the Lone Star State, First Financial Bankshares (NASDAQ: FFIN) is a Texas-focused regional bank providing commercial banking, trust services, and wealth management across numerous communities throughout the state.

Why Do We Watch FFIN?

1. Solid 7.3% annual revenue growth over the last two years indicates its offering’s solve complex business issues
2. Net interest margin jumped by 34.7 basis points (100 basis points = 1 percentage point) over the last two years, giving the company more resources to pursue growth initiatives
3. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 5.3% annually

First Financial Bankshares is trading at $36.38 per share, or 2.9x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 Strong Momentum Stocks for this week. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.

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