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 where Wall Street’s pessimism is creating a buying opportunity and two facing legitimate challenges.
Two Stocks to Sell:
Tyson Foods (TSN)
Consensus Price Target: $67.46 (5.2% implied return)
Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.
Why Do We Avoid TSN?
- Flat unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 7.1% that must be offset through higher volumes
- Sales over the last three years were less profitable as its earnings per share fell by 16.2% annually while its revenue was flat
Tyson Foods is trading at $64.15 per share, or 15.5x forward P/E. Read our free research report to see why you should think twice about including TSN in your portfolio.
Ziff Davis (ZD)
Consensus Price Target: $43.43 (0.6% implied return)
Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ: ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets.
Why Are We Out on ZD?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Earnings per share fell by 4.1% annually over the last five years while its revenue was flat, showing each sale was less profitable
- Free cash flow margin shrank by 9.3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $43.19 per share, Ziff Davis trades at 6x forward P/E. To fully understand why you should be careful with ZD, check out our full research report (it’s free).
One Stock to Buy:
ConocoPhillips (COP)
Consensus Price Target: $130.29 (-0.3% implied return)
Operating the famous Prudhoe Bay field discovered in 1968 that transformed Alaska's economy, ConocoPhillips (NYSE: COP) explores for and produces crude oil, natural gas, and liquefied natural gas across North America, Europe, Asia, and Africa.
Why Are We Bullish on COP?
- Annual revenue growth of 26.2% over the past five years was outstanding, reflecting market share gains this cycle
- Massive revenue base of $61.55 billion makes it a household name that influences purchasing decisions
- Strong free cash flow margin of 17.5% enables it to reinvest or return capital consistently
ConocoPhillips’s stock price of $130.63 implies a valuation ratio of 18.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
