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.
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 where Wall Street’s pessimism is creating a buying opportunity and two where the outlook is warranted.
Two Stocks to Sell:
B&G Foods (BGS)
Consensus Price Target: $4.20 (-2.3% implied return)
Started as a small grocery store in New York City, B&G Foods (NYSE: BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.
Why Do We Avoid BGS?
- Annual sales declines of 4.5% for the past three years show its products struggled to connect with the market
- Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 21.4% annually, worse than its revenue
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
B&G Foods’s stock price of $4.30 implies a valuation ratio of 7.8x forward P/E. To fully understand why you should be careful with BGS, check out our full research report (it’s free).
Emerson Electric (EMR)
Consensus Price Target: $155.95 (3.7% implied return)
Founded in 1890, Emerson Electric (NYSE: EMR) is a multinational technology and engineering company providing solutions in the industrial, commercial, and residential markets.
Why Is EMR Not Exciting?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.4% over the last five years was below our standards for the industrials sector
- Free cash flow margin shrank by 3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Eroding returns on capital suggest its historical profit centers are aging
Emerson Electric is trading at $150.39 per share, or 22.9x forward P/E. Check out our free in-depth research report to learn more about why EMR doesn’t pass our bar.
One Stock to Buy:
Chart (GTLS)
Consensus Price Target: $206.45 (-0.4% implied return)
Installing the first bulk Co2 tank for McDonalds’s sodas, Chart (NYSE: GTLS) provides equipment to store and transport gasses.
Why Do We Love GTLS?
- Demand is greater than supply as the company’s 25.6% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Share buybacks catapulted its annual earnings per share growth to 34.6%, which outperformed its revenue gains over the last two years
- Free cash flow margin jumped by 11.9 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $207.19 per share, Chart trades at 16.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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