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. That said, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two facing legitimate challenges.

Two Stocks to Sell:

Macy's (M)

Consensus Price Target: $21.50 (-14.2% implied return)

With a storied history that began with its 1858 founding, Macy’s (NYSE: M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Why Do We Steer Clear of M?

1. Recent store closures and weak same-store sales point to soft demand and an operational restructuring
2. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
3. Earnings per share have dipped by 17.8% annually over the past three years, which is concerning because stock prices follow EPS over the long term

Macy’s stock price of $25.06 implies a valuation ratio of 10.5x forward P/E. If you’re considering M for your portfolio, see our FREE research report to learn more.

Clorox (CLX)

Consensus Price Target: $105.29 (7.4% implied return)

Founded in 1913 with bleach as the sole product offering, Clorox (NYSE: CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.

Why Is CLX Not Exciting?

1. Annual sales declines of 1.9% for the past three years show its products struggled to connect with the market
2. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
3. Free cash flow margin dropped by 5.8 percentage points over the last year, implying the company became more capital intensive as competition picked up

Clorox is trading at $98.03 per share, or 16.4x forward P/E. Check out our free in-depth research report to learn more about why CLX doesn’t pass our bar.

One Stock to Watch:

Keurig Dr Pepper (KDP)

Consensus Price Target: $33.25 (6% implied return)

Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ: KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.

Why Could KDP Be a Winner?

1. Products are seeing elevated demand as its unit sales averaged 4.8% growth over the past two years
2. Economies of scale give it negotiating power with retailers and suppliers as well as fixed cost leverage when sales grow
3. Market share is on track to rise over the next 12 months as its 72.3% projected revenue growth implies demand will accelerate from its three-year trend

At $31.37 per share, Keurig Dr Pepper trades at 13.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.