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.
Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. Keeping that in mind, here is one stock poised to prove Wall Street wrong and two where the skepticism is well-placed.
Two Stocks to Sell:
Opendoor (OPEN)
Consensus Price Target: $2.99 (-60.9% implied return)
Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.
Why Do We Steer Clear of OPEN?
- Sluggish trends in its homes purchased suggest customers aren’t adopting its solutions as quickly as the company hoped
- Free cash flow margin is forecasted to shrink by 45.3 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- EBITDA losses may force it to accept punitive lending terms or high-cost debt
Opendoor’s stock price of $7.64 implies a valuation ratio of 1.3x forward price-to-sales. Read our free research report to see why you should think twice about including OPEN in your portfolio.
Kennametal (KMT)
Consensus Price Target: $25.25 (-9.1% implied return)
Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE:KMT) is a provider of industrial materials and tools for various sectors.
Why Do We Pass on KMT?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 4.7% annually, worse than its revenue
- ROIC of 7.7% reflects management’s challenges in identifying attractive investment opportunities, and its falling returns suggest its earlier profit pools are drying up
Kennametal is trading at $27.79 per share, or 18.1x forward P/E. Check out our free in-depth research report to learn more about why KMT doesn’t pass our bar.
One Stock to Watch:
Vicor (VICR)
Consensus Price Target: $86.67 (-1.3% implied return)
Founded by a researcher at the Massachusetts Institute of Technology, Vicor (NASDAQ:VICR) provides electrical power conversion and delivery products for a range of industries.
Why Is VICR on Our Radar?
- 9.9% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
- Additional sales over the last two years increased its profitability as the 26.1% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 21.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $87.79 per share, Vicor trades at 42.8x forward P/E. Is now the right 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 Growth Stocks for this month. 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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