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.

Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. That said, here are two stocks where Wall Street’s pessimism is creating a buying opportunity and one facing legitimate challenges.

One Stock to Sell:

Fastly (FSLY)

Consensus Price Target: $9.42 (-18.8% implied return)

Taking its name from the core advantage it delivers to customers, Fastly (NYSE: FSLY) operates an edge cloud platform that processes, secures, and delivers web content as close to end users as possible, enabling faster digital experiences.

Why Do We Avoid FSLY?

1. Below-average net revenue retention rate of 103% suggests it has some trouble expanding within existing accounts
2. Sky-high servicing costs result in an inferior gross margin of 55% that must be offset through increased usage
3. Poor expense management has led to operating margin losses

At $11.59 per share, Fastly trades at 2.6x forward price-to-sales. If you’re considering FSLY for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

First Solar (FSLR)

Consensus Price Target: $269.95 (0.6% implied return)

Headquartered in Arizona, First Solar (NASDAQ: FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.

Why Will FSLR Outperform?

1. Market share has increased this cycle as its 26.4% annual revenue growth over the last two years was exceptional
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 71.6% over the last two years outstripped its revenue performance
3. Free cash flow margin is now positive, showing the company is at an important crossroads

First Solar’s stock price of $268.40 implies a valuation ratio of 12.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

PJT (PJT)

Consensus Price Target: $180.75 (8.4% implied return)

Spun off from Blackstone in 2015 and founded by former Morgan Stanley executive Paul J. Taubman, PJT Partners (NYSE: PJT) is an advisory-focused investment bank that provides strategic advice, restructuring services, and fundraising solutions to corporations, boards, and investment firms.

Why Is PJT on Our Radar?

1. Annual revenue growth of 22.4% over the last two years was superb and indicates its market share increased during this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 36.8% outpaced its revenue gains
3. Industry-leading 27.3% return on equity demonstrates management’s skill in finding high-return investments

PJT is trading at $166.72 per share, or 23.1x forward P/E. Is now the time to initiate a position? See for yourself 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 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-small-cap company Exlservice (+354% 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.