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.
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:
Kyndryl (KD)
Consensus Price Target: $14.70 (6.6% implied return)
Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers.
Why Are We Wary of KD?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.8% annually over the last five years
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Push for growth has led to negative returns on capital, signaling value destruction
Kyndryl is trading at $13.80 per share, or 6.6x forward P/E. If you’re considering KD for your portfolio, see our FREE research report to learn more.
Prudential (PRU)
Consensus Price Target: $99.93 (1.8% implied return)
Recognized by its iconic Rock of Gibraltar logo symbolizing strength and stability since 1896, Prudential Financial (NYSE: PRU) provides life insurance, annuities, retirement solutions, investment management, and other financial services to individual and institutional customers globally.
Why Do We Pass on PRU?
- Net premiums earned plateaued over the last five years, signaling weak incremental demand for its insurance policies
- Book value per share tumbled by 11.3% annually over the last five years, showing insurance sector trends are working against its favor during this cycle
- High debt-to-equity ratio of 1.3× shows the firm carries too much debt relative to shareholder equity, increasing bankruptcy risk
At $98.15 per share, Prudential trades at 1x forward P/B. To fully understand why you should be careful with PRU, check out our full research report (it’s free).
One Stock to Buy:
Dell (DELL)
Consensus Price Target: $187.65 (-10.1% implied return)
Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE: DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.
Why Will DELL Beat the Market?
- Annual revenue growth of 13.3% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Improving returns on capital reflect management’s ability to monetize investments
Dell’s stock price of $208.65 implies a valuation ratio of 15.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive 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 meeting 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 (+1,326% 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.
