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.
Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. Keeping that in mind, here is one stock poised to prove Wall Street wrong and two where the skepticism is well-placed.
Two Stocks to Sell:
Victoria's Secret (VSCO)
Consensus Price Target: $29.90 (-14.5% implied return)
Spun off from L Brands in 2020, Victoria’s Secret (NYSE:VSCO) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances.
Why Do We Steer Clear of VSCO?
- Products have few die-hard fans as sales have declined by 3.4% annually over the last six years
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Earnings per share have contracted by 23.9% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
Victoria's Secret’s stock price of $34.99 implies a valuation ratio of 18.2x forward P/E. Read our free research report to see why you should think twice about including VSCO in your portfolio.
FuelCell Energy (FCEL)
Consensus Price Target: $7.84 (4.6% implied return)
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
Why Do We Think Twice About FCEL?
- Muted 4.3% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $7.50 per share, FuelCell Energy trades at 1x forward price-to-sales. Check out our free in-depth research report to learn more about why FCEL doesn’t pass our bar.
One Stock to Buy:
Monster (MNST)
Consensus Price Target: $72.05 (2.4% 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 Should You Buy MNST?
- Highly efficient business model is illustrated by its impressive 28% operating margin, and its profits increased over the last year as it scaled
- Strong free cash flow margin of 23.4% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Monster is trading at $70.33 per share, or 32.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
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 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-micro-cap company Kadant (+351% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.