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.
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:
NXP Semiconductors (NXPI)
Consensus Price Target: $303.68 (7.3% implied return)
Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.
Why Are We Hesitant About NXPI?
- Annual sales declines of 2.5% for the past two years show its products and services struggled to connect with the market during this cycle
- Estimated sales growth of 15.1% for the next 12 months is soft and implies weaker demand
At $282.96 per share, NXP Semiconductors trades at 17.9x forward P/E. Check out our free in-depth research report to learn more about why NXPI doesn’t pass our bar.
3M (MMM)
Consensus Price Target: $169.91 (5.3% implied return)
Producers of the first asthma inhaler, 3M Company (NYSE: MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.
Why Are We Out on MMM?
- 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
- Estimated sales growth of 3.2% for the next 12 months is soft and implies weaker demand
- Earnings per share have contracted by 2.3% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
3M is trading at $161.30 per share, or 18.6x forward P/E. If you’re considering MMM for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Coherent (COHR)
Consensus Price Target: $384.45 (-2.3% implied return)
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE: COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Should COHR Be on Your Watchlist?
- Market share has increased this cycle as its 19.8% annual revenue growth over the last two years was exceptional
- Projected revenue growth of 34.9% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 82.4% annually
Coherent’s stock price of $393.33 implies a valuation ratio of 52.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
