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.
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 where Wall Street’s pessimism is creating a buying opportunity and two where the outlook is warranted.
Two Stocks to Sell:
Genesco (GCO)
Consensus Price Target: $32.67 (6.3% implied return)
Spanning a broad range of styles, brands, and prices, Genesco (NYSE:GCO) sells footwear, apparel, and accessories through multiple brands and banners.
Why Do We Pass on GCO?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- 8× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $30.73 per share, Genesco trades at 17x forward P/E. To fully understand why you should be careful with GCO, check out our full research report (it’s free for active Edge members).
NetApp (NTAP)
Consensus Price Target: $121.27 (13.5% implied return)
Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ:NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.
Why Does NTAP Fall Short?
- Sales trends were unexciting over the last two years as its 3.1% annual growth was below the typical business services company
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.9%
NetApp’s stock price of $106.84 implies a valuation ratio of 13.6x forward P/E. Read our free research report to see why you should think twice about including NTAP in your portfolio.
One Stock to Buy:
Chart (GTLS)
Consensus Price Target: $206.27 (1.5% implied return)
Installing the first bulk Co2 tank for McDonalds’s sodas, Chart (NYSE:GTLS) provides equipment to store and transport gasses.
Why Are We Backing GTLS?
- Average backlog growth of 25.6% over the past two years shows it has a steady sales pipeline that will drive future orders
- Share buybacks catapulted its annual earnings per share growth to 34.6%, which outperformed its revenue gains over the last two years
- Free cash flow margin expanded by 11.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Chart is trading at $203.32 per share, or 15.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 Exlservice (+354% 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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