Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. 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:
Generac (GNRC)
Consensus Price Target: $152.01 (3.6% implied return)
With its name deriving from a combination of “generating” and “AC”, Generac (NYSE: GNRC) offers generators and other power products for residential, industrial, and commercial use.
Why Should You Dump GNRC?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Free cash flow margin shrank by 7.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Waning returns on capital imply its previous profit engines are losing steam
At $146.72 per share, Generac trades at 18.1x forward P/E. Dive into our free research report to see why there are better opportunities than GNRC.
Leidos (LDOS)
Consensus Price Target: $172.89 (7.4% implied return)
Formed through the split of IT services company SAIC, Leidos (NYSE: LDOS) offers technology and engineering solutions such as military training systems for the defense, civil, and health markets.
Why Are We Wary of LDOS?
- Estimated sales growth of 2.6% for the next 12 months implies demand will slow from its two-year trend
Leidos is trading at $161.04 per share, or 14.7x forward P/E. Read our free research report to see why you should think twice about including LDOS in your portfolio.
One Stock to Watch:
Toast (TOST)
Consensus Price Target: $43.72 (-4.2% implied return)
Founded by three MIT engineers at a local Cambridge bar, Toast (NYSE: TOST) provides integrated point-of-sale (POS) hardware, software, and payments solutions for restaurants.
Why Are We Positive On TOST?
- Customers view its software as mission-critical to their operations as its ARR has averaged 30.4% growth over the last year
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable three-year growth trajectory
- Operating margin expanded by 8.3 percentage points over the last year as it scaled and became more efficient
Toast’s stock price of $45.66 implies a valuation ratio of 4.3x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. 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-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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