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 facing legitimate challenges.
Two Stocks to Sell:
Lindblad Expeditions (LIND)
Consensus Price Target: $15.33 (5.2% implied return)
Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ:LIND) offers cruising experiences to remote destinations in partnership with National Geographic.
Why Should You Sell LIND?
- Subpar operating margin of 3.8% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Free cash flow margin is forecasted to shrink by 2.2 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- Negative returns on capital show that some of its growth strategies have backfired
At $14.58 per share, Lindblad Expeditions trades at 7.1x forward EV-to-EBITDA. To fully understand why you should be careful with LIND, check out our full research report (it’s free).
YETI (YETI)
Consensus Price Target: $36.53 (5.4% implied return)
Founded by two brothers from Texas, YETI (NYSE:YETI) specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.
Why Does YETI Fall Short?
- 6.3% annual revenue growth over the last two years was slower than its consumer discretionary peers
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 6.7 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
YETI’s stock price of $34.65 implies a valuation ratio of 16.2x forward P/E. Read our free research report to see why you should think twice about including YETI in your portfolio.
One Stock to Buy:
Bloom Energy (BE)
Consensus Price Target: $34.77 (-34.6% implied return)
Working in stealth mode for eight years, Bloom Energy (NYSE:BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.
Why Will BE Beat the Market?
- Annual revenue growth of 15.8% over the past five years was outstanding, reflecting market share gains this cycle
- Free cash flow profile has moved into positive territory over the last five years, showing the company is at an important crossroads
- Historical investments are beginning to pay off as its returns on capital are growing
Bloom Energy is trading at $53.14 per share, or 88.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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
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