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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here is one stock poised to prove Wall Street wrong and two where the skepticism is well-placed.

Two Stocks to Sell:

Shoe Carnival (SCVL)

Consensus Price Target: $22.50 (5.2% implied return)

Known for its playful atmosphere that features carnival elements, Shoe Carnival (NASDAQ: SCVL) is a retailer that sells footwear from mainstream brands for the entire family.

Why Are We Out on SCVL?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Modest revenue base of $1.18 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
3. Demand will likely fall over the next 12 months as Wall Street expects flat revenue

Shoe Carnival’s stock price of $21.38 implies a valuation ratio of 7.6x forward EV-to-EBITDA. If you’re considering SCVL for your portfolio, see our FREE research report to learn more.

Offerpad (OPAD)

Consensus Price Target: $1.18 (-13.6% implied return)

Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE: OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.

Why Is OPAD Risky?

1. Performance surrounding its homes purchased has lagged its peers
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Negative earnings profile makes it challenging to secure favorable financing terms from lenders

At $1.37 per share, Offerpad trades at 0.1x forward price-to-sales. Check out our free in-depth research report to learn more about why OPAD doesn’t pass our bar.

One Stock to Buy:

CSW (CSWI)

Consensus Price Target: $294.67 (-3.4% implied return)

With over two centuries of combined operations manufacturing and supplying, CSW (NASDAQ: CSWI) offers special chemicals, coatings, sealants, and lubricants for various industries.

Why Should You Buy CSWI?

1. Annual revenue growth of 19.6% over the last five years was superb and indicates its market share increased during this cycle
2. Additional sales over the last five years increased its profitability as the 25.9% annual growth in its earnings per share outpaced its revenue
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business

CSW is trading at $305.10 per share, or 30.5x 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

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 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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