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 are two stocks where Wall Street’s pessimism is creating a buying opportunity and one facing legitimate challenges.
One stock to sell:
Biogen (BIIB)
Consensus price target: $264.82 (8.5% implied return)
Founded in 1978 and pioneering treatments for some of medicine's most complex challenges, Biogen (NASDAQ: BIIB) develops and markets therapies for neurological conditions, including multiple sclerosis, Alzheimer's disease, spinal muscular atrophy, and rare diseases.
Why Are We Cautious About BIIB?
- Sales tumbled by 1.5% annually over the last five years, showing market trends are working against it during this cycle
- Sales were less profitable over the last five years as its earnings per share fell by 10.4% annually, worse than its revenue declines
- Waning returns on capital imply its previous profit engines are losing steam
Biogen’s stock price of $243.18 implies a valuation ratio of 17.3x forward P/E. If you’re considering BIIB for your portfolio, see our FREE research report to learn more.
Two stocks to watch:
SentinelOne (S)
Consensus price target: $24.92 (16.7% implied return)
Built on the principle of "fighting machine with machine," SentinelOne (NYSE: S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems.
Why Are We Fans of S?
- ARR growth averaged 22.2% over the last year, showing customers are willing to take multi-year bets on its software
- Forecasted revenue growth of 19.2% for the next 12 months indicates its momentum over the last two years is sustainable
- Free cash flow margin is on track to jump by 9.4 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $21.35 per share, SentinelOne trades at 6.1x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
AbbVie (ABBV)
Consensus price target: $306.42 (6.6% 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 Do We Like ABBV?
- Constant currency growth averaged 8.4% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- Dominant market position is represented by its $66.01 billion in revenue, which creates significant barriers to entry in this highly regulated industry
- Robust free cash flow margin of 34.3% gives it many options for capital deployment
AbbVie is trading at $287.49 per share, or 18.7x forward P/E. Is now the right time to buy? 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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
