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 outlook is warranted.
Two Stocks to Sell:
Fortive (FTV)
Consensus Price Target: $63.40 (4.9% implied return)
Taking its name from the Latin root of "strong", Fortive (NYSE: FTV) manufactures products and develops industrial software for numerous industries.
Why Do We Steer Clear of FTV?
- Sales tumbled by 2.4% annually over the last five years, showing market trends are working against its favor during this cycle
- Flat earnings per share over the last five years lagged its peers
- ROIC of 5.5% reflects management’s challenges in identifying attractive investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
Fortive’s stock price of $60.43 implies a valuation ratio of 20x forward P/E. Dive into our free research report to see why there are better opportunities than FTV.
Texas Capital Bank (TCBI)
Consensus Price Target: $107.69 (5.2% implied return)
Founded during the Texas banking renaissance of the 1990s with an entrepreneurial spirit, Texas Capital Bancshares (NASDAQ: TCBI) is a financial services firm that provides banking, wealth management, and investment banking services to businesses and individuals across Texas and beyond.
Why Does TCBI Fall Short?
- Muted 5.1% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Estimated net interest income growth of 3% for the next 12 months implies demand will slow from its five-year trend
- Low return on equity reflects management’s struggle to allocate funds effectively
At $102.36 per share, Texas Capital Bank trades at 1.2x forward P/B. Read our free research report to see why you should think twice about including TCBI in your portfolio.
One Stock to Watch:
Hewlett Packard Enterprise (HPE)
Consensus Price Target: $27.08 (-10.4% implied return)
Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE: HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.
Why Do We Like HPE?
- Offerings are pivotal for their customers' operations as its ARR has averaged 49.2% growth over the past two years
- Enormous revenue base of $35.74 billion provides significant distribution advantages
- Market share is on track to rise over the next 12 months as its 16.6% projected revenue growth implies demand will accelerate from its two-year trend
Hewlett Packard Enterprise is trading at $30.23 per share, or 12.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
