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.
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. That said, here is one stock poised to prove Wall Street wrong and two facing legitimate challenges.
Two Stocks to Sell:
Solventum (SOLV)
Consensus Price Target: $82.80 (-2.1% implied return)
Founded in 1985, Solventum (NYSE:SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services addressing critical customer and therapeutic patient needs.
Why Do We Steer Clear of SOLV?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Estimated sales decline of 5.3% for the next 12 months implies a challenging demand environment
- Free cash flow margin shrank by 30.1 percentage points over the last four years, suggesting the company is consuming more capital to stay competitive
At $84.61 per share, Solventum trades at 13.7x forward P/E. Read our free research report to see why you should think twice about including SOLV in your portfolio.
Invesco (IVZ)
Consensus Price Target: $26.38 (6.8% implied return)
With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE:IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.
Why Do We Think IVZ Will Underperform?
- Muted 4.5% annual revenue growth over the last two years shows its demand lagged behind its financials peers
- Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew
- Below-average return on equity indicates management struggled to find compelling investment opportunities
Invesco is trading at $24.70 per share, or 10.3x forward P/E. Dive into our free research report to see why there are better opportunities than IVZ.
One Stock to Watch:
Colgate-Palmolive (CL)
Consensus Price Target: $87.21 (9.2% implied return)
Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive (NYSE:CL) is a consumer products company that focuses on personal, household, and pet products.
Why Are We Positive On CL?
- Enormous revenue base of $20.1 billion provides significant negotiating leverage in retail partnerships
- Products command premium prices and result in a best-in-class gross margin of 60.3%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Colgate-Palmolive’s stock price of $79.88 implies a valuation ratio of 21.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 6 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-micro-cap company Tecnoglass (+1,754% 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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