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.
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 outlook is warranted.
Two Stocks to Sell:
Skyworks Solutions (SWKS)
Consensus Price Target: $68.35 (-5.2% implied return)
Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.
Why Do We Steer Clear of SWKS?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.2% annually over the last two years
- Projected sales for the next 12 months are flat and suggest demand will be subdued
- Overall productivity fell over the last five years as its plummeting sales were accompanied by a decline in its operating margin
Skyworks Solutions is trading at $72.13 per share, or 14.3x forward P/E. Check out our free in-depth research report to learn more about why SWKS doesn’t pass our bar.
Ibotta (IBTA)
Consensus Price Target: $36.14 (-4% implied return)
Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE:IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.
Why Does IBTA Give Us Pause?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.3% annually over the last two years
- Modest revenue base of $343.2 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Earnings per share have contracted by 22.3% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
At $37.64 per share, Ibotta trades at 23.1x forward P/E. To fully understand why you should be careful with IBTA, check out our full research report (it’s free).
One Stock to Watch:
PJT (PJT)
Consensus Price Target: $187.80 (3.6% implied return)
Spun off from Blackstone in 2015 and founded by former Morgan Stanley executive Paul J. Taubman, PJT Partners (NYSE:PJT) is an advisory-focused investment bank that provides strategic advice, restructuring services, and fundraising solutions to corporations, boards, and investment firms.
Why Does PJT Catch Our Eye?
- Market share has increased this cycle as its 20.6% annual revenue growth over the last two years was exceptional
- Share buybacks catapulted its annual earnings per share growth to 42.2%, which outperformed its revenue gains over the last two years
- Industry-leading 27.8% return on equity demonstrates management’s skill in finding high-return investments
PJT’s stock price of $181.24 implies a valuation ratio of 21.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.