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 are two stocks where Wall Street’s pessimism is creating a buying opportunity and one where the outlook is warranted.
One Stock to Sell:
Lindsay (LNN)
Consensus Price Target: $153 (9.7% implied return)
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services.
Why Is LNN Not Exciting?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Sales are projected to tank by 2.6% over the next 12 months as its demand continues evaporating
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4% annually
Lindsay’s stock price of $139.52 implies a valuation ratio of 21.9x forward P/E. Check out our free in-depth research report to learn more about why LNN doesn’t pass our bar.
Two Stocks to Watch:
Take-Two (TTWO)
Consensus Price Target: $262.02 (5.2% implied return)
Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ:TTWO) is one of the world’s largest video game publishers.
Why Should TTWO Be on Your Watchlist?
- Strong consumer demand for its platform drove 15.2% annual revenue growth over the last three years, outperforming sector peers
- Exciting sales outlook for the upcoming 12 months calls for 33.7% growth, an acceleration from its three-year trend
- Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 14.3%
At $249 per share, Take-Two trades at 31.3x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
SmartRent (SMRT)
Consensus Price Target: $1.48 (1.7% implied return)
Founded by an employee at a real estate rental company, SmartRent (NYSE:SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
Why Are We Fans of SMRT?
- ARR trends over the past two years show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Market share is on track to rise over the next 12 months as its 22.2% projected revenue growth implies demand will accelerate from its two-year trend
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 27.6% annually
SmartRent is trading at $1.45 per share, or 1.4x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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-micro-cap company Kadant (+351% 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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