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 where Wall Street’s pessimism is creating a buying opportunity and two facing legitimate challenges.
Two Stocks to Sell:
Mondelez (MDLZ)
Consensus Price Target: $69.13 (9.6% implied return)
Founded as Nabisco in 1903, Mondelez (NASDAQ:MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.
Why Are We Cautious About MDLZ?
- Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Estimated sales growth of 2.6% for the next 12 months implies demand will slow from its three-year trend
- Incremental sales over the last three years were much less profitable as its earnings per share fell by 3% annually while its revenue grew
Mondelez’s stock price of $63.09 implies a valuation ratio of 20x forward P/E. If you’re considering MDLZ for your portfolio, see our FREE research report to learn more.
WaFd Bank (WAFD)
Consensus Price Target: $39 (7.7% implied return)
Founded in 1917 and rebranded from Washington Federal in 2023, WaFd (NASDAQ:WAFD) is a bank holding company that provides lending, deposit services, and insurance through its Washington Federal Bank subsidiary across eight western states.
Why Do We Avoid WAFD?
- Net interest income trends were unexciting over the last five years as its 7.4% annual growth was below the typical banking firm
- Net interest margin of 2.7% reflects its high servicing and capital costs
- Earnings per share were flat over the last two years while its revenue grew, showing its incremental sales were less profitable
WaFd Bank is trading at $36.21 per share, or 1x forward P/B. Check out our free in-depth research report to learn more about why WAFD doesn’t pass our bar.
One Stock to Watch:
Five Below (FIVE)
Consensus Price Target: $271.62 (4.9% implied return)
Often facilitating a treasure hunt shopping experience, Five Below (NASDAQ:FIVE) is an American discount retailer that sells a variety of products from mobile phone cases to candy to sports equipment for largely $5 or less.
Why Should FIVE Be on Your Watchlist?
- Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance
- Same-store sales growth averaged 8% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Market share will likely rise over the next 12 months as its expected revenue growth of 10.3% is robust
At $258.85 per share, Five Below trades at 28.8x 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
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.