Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
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 you should be greedy instead of fearful and one facing legitimate challenges.
One Stock to Sell:
Macy's (M)
Consensus Price Target: $16.59 (-14% implied return)
With a storied history that began with its 1858 founding, Macy’s (NYSE:M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.
Why Do We Pass on M?
- Store closures and disappointing same-store sales suggest demand is sluggish and it’s rightsizing its operations
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Forecasted revenue decline of 3.5% for the upcoming 12 months implies demand will fall even further
Macy's is trading at $19.30 per share, or 9.8x forward P/E. Check out our free in-depth research report to learn more about why M doesn’t pass our bar.
Two Stocks to Watch:
Seagate Technology (STX)
Consensus Price Target: $284.95 (17.4% implied return)
The developer of the original 5.25inch hard disk drive, Seagate (NASDAQ:STX) is a leading producer of data storage solutions, including hard drives and Solid State Drives (SSDs) used in PCs and data centers.
Why Are We Positive On STX?
- Annual revenue growth of 18.5% over the past two years was outstanding, reflecting market share gains this cycle
- Projected revenue growth of 20% for the next 12 months indicates demand will rise above its two-year trend
- Operating margin expansion of 6.9 percentage points over the last five years shows the company optimized its expenses
At $242.81 per share, Seagate Technology trades at 19.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Altria (MO)
Consensus Price Target: $62.58 (7.5% implied return)
Best known for its Marlboro brand of cigarettes, Altria (NYSE:MO) offers tobacco and nicotine products.
Why Does MO Stand Out?
- Unique products and pricing power are reflected in its best-in-class gross margin of 70.9%
- Highly efficient business model is illustrated by its impressive 55% operating margin
- MO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its expanding margin gives it even more flexibility
Altria’s stock price of $58.22 implies a valuation ratio of 10.5x forward P/E. 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
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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-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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