Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
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. That said, here is one stock poised to prove Wall Street wrong and two where the outlook is warranted.
Two Stocks to Sell:
Foot Locker (FL)
Consensus Price Target: $23.09 (-3.7% implied return)
Known for store associates whose uniforms resemble those of referees, Foot Locker (NYSE: FL) is a specialty retailer that sells athletic footwear, clothing, and accessories.
Why Do We Think FL Will Underperform?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Poor expense management has led to an operating margin of -0.5% that is below the industry average
- High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Foot Locker’s stock price of $23.99 implies a valuation ratio of 18.4x forward P/E. If you’re considering FL for your portfolio, see our FREE research report to learn more.
Deere (DE)
Consensus Price Target: $548.72 (4.6% implied return)
Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE: DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.
Why Do We Pass on DE?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 14% annually over the last two years
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate
At $524.72 per share, Deere trades at 26.8x forward P/E. Check out our free in-depth research report to learn more about why DE doesn’t pass our bar.
One Stock to Buy:
Celsius (CELH)
Consensus Price Target: $44.35 (0.9% implied return)
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ: CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Why Are We Bullish on CELH?
- Annual revenue growth of 49.5% over the last three years was superb and indicates its market share is rising
- Earnings per share have massively outperformed its peers over the last three years, increasing by 77.6% annually
- CELH is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Celsius is trading at $43.95 per share, or 41.6x 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
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 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 Comfort Systems (+782% 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
