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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here are two stocks poised to prove Wall Street wrong and one facing legitimate challenges.
One Stock to Sell:
Artivion (AORT)
Consensus Price Target: $51.71 (15% implied return)
Formerly known as CryoLife until its 2022 rebranding, Artivion (NYSE:AORT) develops and manufactures medical devices and preserves human tissues used in cardiac and vascular surgical procedures for patients with aortic disease.
Why Does AORT Give Us Pause?
- Subscale operations are evident in its revenue base of $422.6 million, meaning it has fewer distribution channels than its larger rivals
- Poor free cash flow margin of 0.1% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Artivion’s stock price of $44.98 implies a valuation ratio of 62.1x forward P/E. Check out our free in-depth research report to learn more about why AORT doesn’t pass our bar.
Two Stocks to Watch:
Hilton (HLT)
Consensus Price Target: $281.83 (2.9% implied return)
Founded in 1919, Hilton Worldwide (NYSE:HLT) is a global hospitality company with a portfolio of hotel brands.
Why Is HLT on Our Radar?
- Share repurchases over the last five years enabled its annual earnings per share growth of 45.6% to outpace its revenue gains
- ROIC punches in at 24.1%, illustrating management’s expertise in identifying profitable investments, and its returns are growing as it capitalizes on even better market opportunities
- Rising returns on capital show management is finding more attractive investment opportunities
At $273.90 per share, Hilton trades at 31.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Powell (POWL)
Consensus Price Target: $269.26 (-29.3% implied return)
Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE:POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.
Why Are We Backing POWL?
- Market share has increased this cycle as its 28.7% annual revenue growth over the last two years was exceptional
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 124% over the last two years outstripped its revenue performance
- Free cash flow margin increased by 12.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Powell is trading at $381 per share, or 25.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
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