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:
Oxford Industries (OXM)
Consensus Price Target: $47.75 (7.1% implied return)
The parent company of Tommy Bahama, Oxford Industries (NYSE: OXM) is a lifestyle fashion conglomerate with brands that embody outdoor happiness.
Why Should You Sell OXM?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its stores
- Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend
- Waning returns on capital imply its previous profit engines are losing steam
Oxford Industries is trading at $44.57 per share, or 9.8x forward P/E. Read our free research report to see why you should think twice about including OXM in your portfolio.
STERIS (STE)
Consensus Price Target: $272.38 (10.1% implied return)
With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE: STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments.
Why Does STE Worry Us?
- Underwhelming 4.9% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $247.50 per share, STERIS trades at 24.1x forward P/E. Dive into our free research report to see why there are better opportunities than STE.
One Stock to Watch:
TJX (TJX)
Consensus Price Target: $148.67 (8.1% implied return)
Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE: TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.
Why Do We Watch TJX?
- Comparable store sales rose by 4.1% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Massive revenue base of $57.93 billion makes up for its weaker gross margin and makes it a household name that influences purchasing decisions
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are climbing as it finds even more attractive growth opportunities
TJX’s stock price of $137.50 implies a valuation ratio of 29.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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