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.
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. Keeping that in mind, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two where the outlook is warranted.
Two Stocks to Sell:
ePlus (PLUS)
Consensus Price Target: $92 (3.2% implied return)
Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ: PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.
Why Does PLUS Fall Short?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Forecasted revenue decline of 2.1% for the upcoming 12 months implies demand will fall off a cliff
- Earnings per share have dipped by 5.5% annually over the past two years, which is concerning because stock prices follow EPS over the long term
At $89.18 per share, ePlus trades at 20.1x forward P/E. Dive into our free research report to see why there are better opportunities than PLUS.
Goodyear (GT)
Consensus Price Target: $9.64 (0.8% implied return)
With its iconic blimp floating above major sporting events since 1925, Goodyear (NYSE: GT) is one of the world's largest tire manufacturers, producing and selling tires for automobiles, trucks, aircraft, and other vehicles, along with related services.
Why Is GT Risky?
- Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Free cash flow margin dropped by 5.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Underwhelming 4.9% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging
Goodyear’s stock price of $9.56 implies a valuation ratio of 8.1x forward P/E. If you’re considering GT for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
SmartRent (SMRT)
Consensus Price Target: $1.73 (-2.8% implied return)
Founded by an employee at a real estate rental company, SmartRent (NYSE: SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
Why Is SMRT on Our Radar?
- Offerings are pivotal for their customers' operations as its ARR has averaged 22.9% growth over the past two years
- Earnings per share grew by 24.1% annually over the last three years and trumped its peers
- Rising returns on capital show the company is starting to reap the benefits of its past investments
SmartRent is trading at $1.78 per share, or 78.1x forward EV-to-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
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.
