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. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two facing legitimate challenges.
Two Stocks to Sell:
Best Buy (BBY)
Consensus Price Target: $79.15 (-7.4% implied return)
With humble beginnings as a stereo equipment seller, Best Buy (NYSE: BBY) now sells a broad selection of consumer electronics, appliances, and home office products.
Why Do We Think BBY Will Underperform?
- Store closures and disappointing same-store sales suggest demand is sluggish and it’s rightsizing its operations
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Gross margin of 22.6% is an output of its commoditized inventory
At $85.43 per share, Best Buy trades at 12.7x forward P/E. To fully understand why you should be careful with BBY, check out our full research report (it’s free).
AMC Networks (AMCX)
Consensus Price Target: $7.50 (-23.4% implied return)
Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ: AMCX) is a broadcaster producing a diverse range of television shows and movies.
Why Should You Sell AMCX?
- Annual sales declines of 3.7% for the past five years show its products and services struggled to connect with the market
- Free cash flow margin is forecasted to shrink by 1 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
AMC Networks is trading at $9.79 per share, or 7.9x forward P/E. Read our free research report to see why you should think twice about including AMCX in your portfolio.
One Stock to Buy:
Natera (NTRA)
Consensus Price Target: $282.86 (8.2% implied return)
Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ: NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.
Why Do We Love NTRA?
- Tests Processed averaged 19.4% growth over the past two years and imply healthy demand for its products
- Adjusted operating profits increased over the last two years as the company gained some leverage on its fixed costs and became more efficient
- Free cash flow margin is now positive, showing the company is at an important crossroads
Natera’s stock price of $261.40 implies a valuation ratio of 12.8x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
