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.
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. That said, here are two stocks poised to prove Wall Street wrong and one where the skepticism is well-placed.
One Stock to Sell:
Henry Schein (HSIC)
Consensus Price Target: $75.85 (6.9% implied return)
With a vast inventory of over 300,000 products stocked in distribution centers spanning more than 5.3 million square feet worldwide, Henry Schein (NASDAQ:HSIC) is a global distributor of healthcare products and services primarily to dental practices, medical offices, and other healthcare facilities.
Why Are We Cautious About HSIC?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2.8 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
Henry Schein is trading at $70.94 per share, or 13.9x forward P/E. To fully understand why you should be careful with HSIC, check out our full research report (it’s free for active Edge members).
Two Stocks to Watch:
Quanta (PWR)
Consensus Price Target: $463.88 (2.4% implied return)
A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Is PWR a Good Business?
- Sales pipeline is in good shape as its backlog averaged 16.7% growth over the past two years
- Forecasted revenue growth of 12.7% for the next 12 months indicates its momentum over the last two years is sustainable
- Earnings per share grew by 24.3% annually over the last two years, massively outpacing its peers
Quanta’s stock price of $452.98 implies a valuation ratio of 37.8x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Lemonade (LMND)
Consensus Price Target: $45.88 (-42% implied return)
Built on the principle of giving back unused premiums to charitable causes selected by policyholders, Lemonade (NYSE:LMND) is a technology-driven insurance company that offers homeowners, renters, pet, car, and life insurance through an AI-powered digital platform.
Why Could LMND Be a Winner?
- Market penetration was impressive this cycle as its net premiums earned expanded by 24.7% annually over the last two years
- Exciting sales outlook for the upcoming 12 months calls for 52.7% growth, an acceleration from its two-year trend
- Pre-tax profit margin expanded by 37.1 percentage points over the last two years as it scaled and became more efficient
At $79.11 per share, Lemonade trades at 12.1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
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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