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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here is one stock poised to prove Wall Street wrong and two where the skepticism is well-placed.

Two Stocks to Sell:

Home Depot (HD)

Consensus Price Target: $370.18 (12.4% implied return)

Founded and headquartered in Atlanta, Georgia, Home Depot (NYSE: HD) is a home improvement retailer that sells everything from tools to building materials to appliances.

Why Are We Hesitant About HD?

1. The company has faced growth challenges as its 2.3% annual revenue increases over the last three years fell short of other consumer retail companies
2. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
3. Widely-available products (and therefore stiff competition) result in an inferior gross margin of 33.2% that must be offset through higher volumes

Home Depot’s stock price of $329.33 implies a valuation ratio of 22x forward P/E. Dive into our free research report to see why there are better opportunities than HD.

Starbucks (SBUX)

Consensus Price Target: $106.25 (5.9% implied return)

Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ: SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.

Why Are We Wary of SBUX?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
2. Estimated sales decline of 2.6% for the next 12 months implies a challenging demand environment
3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 4.9 percentage points

At $100.33 per share, Starbucks trades at 37.5x forward P/E. Check out our free in-depth research report to learn more about why SBUX doesn’t pass our bar.

One Stock to Buy:

Hubbell (HUBB)

Consensus Price Target: $550.77 (8.2% implied return)

A respected player in the electrical segment, Hubbell (NYSE: HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.

Why Is HUBB a Top Pick?

1. Offerings and unique value proposition resonate with customers, as seen in its above-market 10.2% annual sales growth over the last five years
2. Share buybacks catapulted its annual earnings per share growth to 19.7%, which outperformed its revenue gains over the last five years
3. Free cash flow margin expanded by 7.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Hubbell is trading at $509.03 per share, or 24.8x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.