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 is one stock where you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
PACCAR (PCAR)
Consensus Price Target: $141.03 (7.9% implied return)
Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
Why Are We Wary of PCAR?
- Annual sales declines of 11.2% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share have dipped by 29% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
PACCAR is trading at $130.71 per share, or 19.9x forward P/E. Dive into our free research report to see why there are better opportunities than PCAR.
PayPal (PYPL)
Consensus Price Target: $59.16 (-1.9% implied return)
Originally spun off from eBay in 2015 after being acquired by the auction giant in 2002, PayPal (NASDAQ:PYPL) operates a global digital payments platform that enables consumers and merchants to send, receive, and process payments online and in person.
Why Do We Pass on PYPL?
- Annual sales growth of 4.9% over the last two years lagged behind its financials peers as its large revenue base made it difficult to generate incremental demand
- Annual earnings per share growth of 2.3% underperformed its revenue over the last two years, showing its incremental sales were less profitable
PayPal’s stock price of $60.32 implies a valuation ratio of 10.7x forward P/E. Read our free research report to see why you should think twice about including PYPL in your portfolio.
One Stock to Buy:
StoneX (SNEX)
Consensus Price Target: $75 (12.6% implied return)
Originally known as INTL FCStone until its 2020 rebranding, StoneX Group (NASDAQ:SNEX) provides a global financial services network connecting companies, traders, and investors to markets through clearing, execution, and advisory services.
Why Should You Buy SNEX?
- Market share has increased this cycle as its 36% annual revenue growth over the last two years was exceptional
- Additional sales over the last two years increased its profitability as the 40% annual growth in its earnings per share outpaced its revenue
- Annual tangible book value per share growth of 17.1% over the last five years was superb and indicates its capital strength increased during this cycle
At $66.60 per share, StoneX trades at 2.8x forward P/B. Is now the time to initiate a position? 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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.