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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here are two stocks poised to prove Wall Street wrong and one facing legitimate challenges.

One Stock to Sell:

Citigroup (C)

Consensus Price Target: $99.45 (3.5% implied return)

With operations in nearly 160 countries and a history dating back to 1812, Citigroup (NYSE: C) is a global financial services company that provides banking, investment, wealth management, and payment solutions to consumers, corporations, and governments.

Why Are We Cautious About C?

1. Large revenue base makes it harder to expand quickly, and its annual net interest income growth of 5.3% over the last five years was below our standards for the bank sector
2. Projected net interest income is flat for the next 12 months, implying demand will slow from its five-year trend
3. Inferior net interest margin of 2.4% means it must compensate for lower profitability through increased loan originations

Citigroup’s stock price of $96.10 implies a valuation ratio of 0.9x forward P/B. To fully understand why you should be careful with C, check out our full research report (it’s free).

Two Stocks to Watch:

Paychex (PAYX)

Consensus Price Target: $149.23 (0.4% implied return)

One of the oldest service providers in the industry, Paychex (NASDAQ: PAYX) offers its customers payroll and HR software solutions.

Why Does PAYX Stand Out?

1. Demand will likely accelerate over the next 12 months as its forecasted revenue growth of 17.5% is above its three-year trend
2. Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 39.6%
3. PAYX is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $148.64 per share, Paychex trades at 8.2x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

Monster (MNST)

Consensus Price Target: $62.87 (3.3% implied return)

Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.

Why Will MNST Outperform?

1. Healthy operating margin of 27.3% shows it’s a well-run company with efficient processes
2. Strong free cash flow margin of 22% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
3. Industry-leading 38% return on capital demonstrates management’s skill in finding high-return investments

Monster is trading at $60.88 per share, or 32.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 6 Stocks for this week. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

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