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.
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. Keeping that in mind, here is one stock poised to prove Wall Street wrong and two where the outlook is warranted.
Two Stocks to Sell:
Expeditors (EXPD)
Consensus Price Target: $180.47 (-6% implied return)
Expeditors (NYSE: EXPD) offers air and ocean freight as well as brokerage services.
Why Does EXPD Fall Short?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- High input costs result in an inferior gross margin of 13.5% that must be offset through higher volumes
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Expeditors’s stock price of $192.03 implies a valuation ratio of 24.9x forward P/E. To fully understand why you should be careful with EXPD, check out our full research report (it’s free).
Neogen (NEOG)
Consensus Price Target: $14 (5.7% implied return)
Founded in 1981 and operating at the intersection of food safety and animal health, Neogen (NASDAQ: NEOG) develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health.
Why Is NEOG Risky?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.6% annually over the last two years
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 9.6% annually
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Neogen is trading at $13.25 per share, or 41.1x forward P/E. If you’re considering NEOG for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Fastenal (FAST)
Consensus Price Target: $48.84 (-3.9% implied return)
Founded in 1967, Fastenal (NASDAQ: FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.
Why Is FAST Interesting?
- Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 45.4%
- Highly efficient business model is illustrated by its impressive 20.4% operating margin
- Free cash flow margin increased by 5.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $50.84 per share, Fastenal trades at 37.7x forward P/E. 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
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
