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.
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 where Wall Street’s pessimism is creating a buying opportunity and one facing legitimate challenges.
One Stock to Sell:
Bally's (BALY)
Consensus Price Target: $12.25 (-7.5% implied return)
Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE: BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms.
Why Do We Pass on BALY?
- Sales trends were unexciting over the last two years as its 4.6% annual growth was below the typical consumer discretionary company
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Bally's is trading at $13.25 per share, or 11.1x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than BALY.
Two Stocks to Watch:
Apple (AAPL)
Consensus Price Target: $300.65 (7.3% implied return)
Creator of the iPhone and App Store, Apple (NASDAQ: AAPL) is a legendary developer of consumer electronics and software.
Why Should AAPL Be on Your Watchlist?
- Apple's revenue base is so large because nearly everyone in the U.S. has an iPhone, but this is a double-edged sword. Growth must now come from upgrades, a harder pitch that has resulted in sluggish top-line performance recently.
- Still, Apple's devices have endured for decades, speaking to its brand, design ethos, and technological chops. Its success is rare in the world of consumer electronics, which is fraught because of commoditization, competition, and obsolescence risk.
- The company may not have the best gross margin because of its hardware orientation, but it still manages to produce elite operating and free cash flow margins. This shows it doesn’t need over-the-top marketing campaigns to convince people to buy its products.
Apple’s stock price of $280.08 implies a valuation ratio of 29.9x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.
Kinder Morgan (KMI)
Consensus Price Target: $35.33 (8% implied return)
Operating what amounts to the toll roads of the energy industry, Kinder Morgan (NYSE: KMI) transports natural gas, refined petroleum products, and crude oil through its pipeline network across North America.
Why Is KMI on Our Radar?
- Enormous revenue base of $17.53 billion provides significant leverage in supplier negotiations
- EBITDA margin improvement of 4.9 percentage points over the last five years demonstrates its ability to scale efficiently
- Strong free cash flow margin of 20.4% enables it to reinvest or return capital consistently
At $32.73 per share, Kinder Morgan trades at 22.3x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
