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.
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:
Golden Entertainment (GDEN)
Consensus Price Target: $30.50 (5.6% implied return)
Founded in 2001, Golden Entertainment (NASDAQ: GDEN) is a gaming company operating casinos, taverns, and distributed gaming platforms.
Why Do We Pass on GDEN?
- Products and services aren't resonating with the market as its revenue declined by 2.5% annually over the last five years
- Poor free cash flow margin of 4.3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Golden Entertainment is trading at $28.90 per share, or 38.7x forward P/E. If you’re considering GDEN for your portfolio, see our FREE research report to learn more.
Republic Bancorp (RBCAA)
Consensus Price Target: $75 (4.4% implied return)
With roots dating back to 1974 and operating across multiple states including Kentucky, Indiana, Florida, Ohio, and Tennessee, Republic Bancorp (NASDAQGS:RBCA.A) is a Kentucky-based financial holding company that operates a bank offering traditional banking, mortgage services, and specialized financial products.
Why Does RBCAA Worry Us?
- Muted 7.6% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Forecasted net interest income decline of 1.9% for the upcoming 12 months implies demand will fall off a cliff
- Estimated tangible book value per share growth of 7.4% for the next 12 months implies profitability will slow from its two-year trend
Republic Bancorp’s stock price of $71.81 implies a valuation ratio of 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than RBCAA.
One Stock to Buy:
SPX Technologies (SPXC)
Consensus Price Target: $240 (-0.4% implied return)
With roots dating back to 1912 as the Piston Ring Company, SPX Technologies (NYSE: SPXC) supplies specialized infrastructure equipment for HVAC systems and detection and measurement applications across industrial, commercial, and utility markets.
Why Are We Backing SPXC?
- Market share has increased this cycle as its 12.7% annual revenue growth over the last two years was exceptional
- Operating margin expanded by 8.5 percentage points over the last five years as it scaled and became more efficient
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 23% annually
At $240.98 per share, SPX Technologies trades at 33.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
