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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here are two stocks where Wall Street’s pessimism is creating a buying opportunity and one facing legitimate challenges.
One Stock to Sell:
Constellation Brands (STZ)
Consensus Price Target: $170.73 (15.9% implied return)
With a presence in more than 100 countries, Constellation Brands (NYSE:STZ) is a globally renowned producer and marketer of beer, wine, and spirits.
Why Does STZ Worry Us?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Estimated sales decline of 3.1% for the next 12 months implies an even more challenging demand environment
- ROIC of 9% reflects management’s challenges in identifying attractive investment opportunities, and its decreasing returns suggest its historical profit centers are aging
At $147.30 per share, Constellation Brands trades at 12.6x forward P/E. If you’re considering STZ for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Coherent (COHR)
Consensus Price Target: $273.11 (7.6% implied return)
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE:COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Should COHR Be on Your Watchlist?
- Annual revenue growth of 16.6% over the past two years was outstanding, reflecting market share gains this cycle
- Exciting sales outlook for the upcoming 12 months calls for 24.2% growth, an acceleration from its two-year trend
- Earnings per share have massively outperformed its peers over the last two years, increasing by 69.9% annually
Coherent’s stock price of $253.87 implies a valuation ratio of 43.6x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
NCR Atleos (NATL)
Consensus Price Target: $50.27 (8.4% implied return)
Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos (NYSE:NATL) provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.
Why Are We Positive On NATL?
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 78.6% annually, topping its revenue gains
NCR Atleos is trading at $46.39 per share, or 9.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.