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 poised to prove Wall Street wrong and two where the outlook is warranted.
Two Stocks to Sell:
Health Catalyst (HCAT)
Consensus Price Target: $1.83 (-1.2% implied return)
Built on its "Health Catalyst Flywheel" methodology that emphasizes measurable outcomes, Health Catalyst (NASDAQ: HCAT) provides data and analytics technology and services that help healthcare organizations manage their data and drive measurable clinical, financial, and operational improvements.
Why Are We Bearish on HCAT?
- Customers had second thoughts about committing to its platform over the last year as its billings averaged 14.4% declines
- Gross margin of 51.2% is way below its competitors, leaving less money to invest in areas like marketing and R&D
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
Health Catalyst is trading at $1.86 per share, or 0.6x forward price-to-sales. Read our free research report to see why you should think twice about including HCAT in your portfolio.
Haemonetics (HAE)
Consensus Price Target: $96.90 (8.2% implied return)
With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE: HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.
Why Are We Hesitant About HAE?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Smaller revenue base of $1.35 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
Haemonetics’s stock price of $89.55 implies a valuation ratio of 16.7x forward P/E. To fully understand why you should be careful with HAE, check out our full research report (it’s free).
One Stock to Watch:
Tenet Healthcare (THC)
Consensus Price Target: $282.48 (5.5% implied return)
With a network spanning nine states and serving primarily urban and suburban communities, Tenet Healthcare (NYSE: THC) operates a nationwide network of hospitals, ambulatory surgery centers, and outpatient facilities providing acute care and specialty healthcare services.
Why Are We Positive on THC?
- Share repurchases over the last five years enabled its annual earnings per share growth of 18.6% to outpace its revenue gains
- Free cash flow margin grew by 11.7 percentage points over the last five years, giving the company more chips to play with
- Improving returns on capital reflect management’s ability to monetize investments
At $267.87 per share, Tenet Healthcare trades at 13x forward P/E. Is now the time to initiate a position? 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 (+1,460% 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.
