Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Tyson Foods (TSN)
Consensus Price Target: $61.75 (17.6% implied return)
Started as a simple trucking business, Tyson Foods (NYSE:TSN) is one of the world’s largest producers of chicken, beef, and pork.
Why Do We Steer Clear of TSN?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.1% over the last three years was below our standards for the consumer staples sector
- Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 7.4% that must be offset through higher volumes
- Earnings per share have contracted by 25.5% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
Tyson Foods’s stock price of $52.50 implies a valuation ratio of 14.4x forward P/E. Read our free research report to see why you should think twice about including TSN in your portfolio.
Everest Group (EG)
Consensus Price Target: $375.07 (15.7% implied return)
Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE:EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents.
Why Are We Cautious About EG?
- Forecasted revenue decline of 2.5% for the upcoming 12 months implies demand will fall off a cliff
- Day-to-day expenses have swelled relative to revenue over the last two years as its combined ratio increased by 8.7 percentage points
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 50.5% annually while its revenue grew
At $324.14 per share, Everest Group trades at 0.8x forward P/B. To fully understand why you should be careful with EG, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Stryker (SYK)
Consensus Price Target: $428.52 (20% implied return)
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE:SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Are We Positive On SYK?
- Core business can prosper without any help from acquisitions as its organic revenue growth averaged 10.2% over the past two years
- Revenue base of $24.38 billion gives it economies of scale and some negotiating power
- Earnings per share grew by 13.1% annually over the last five years and trumped its peers
Stryker is trading at $357.05 per share, or 25x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our 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 Comfort Systems (+782% 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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