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 is one stock poised to prove Wall Street wrong and two facing legitimate challenges.
Two Stocks to Sell:
eBay (EBAY)
Consensus Price Target: $99.13 (7.4% implied return)
Originally known as the first online auction site, eBay (NASDAQ: EBAY) is one of the world’s largest online marketplaces.
Why Does EBAY Fall Short?
- May need to improve its platform and marketing strategy as its 1.2% average growth in active buyers underwhelmed
- Estimated sales growth of 8.4% for the next 12 months is soft and implies weaker demand
- Efficiency has decreased over the last few years as its EBITDA margin fell by 3.2 percentage points
eBay is trading at $92.28 per share, or 12.5x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than EBAY.
Herbalife (HLF)
Consensus Price Target: $16.50 (5.1% implied return)
With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE: HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.
Why Is HLF Not Exciting?
- Shrinking unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.7%
- Issuance of new shares over the last three years caused its earnings per share to fall by 14.4% annually, even worse than its revenue declines
Herbalife’s stock price of $15.70 implies a valuation ratio of 6.3x forward P/E. Read our free research report to see why you should think twice about including HLF in your portfolio.
One Stock to Watch:
W. R. Berkley (WRB)
Consensus Price Target: $68.33 (0.9% implied return)
Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE: WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.
Why Should WRB Be on Your Watchlist?
- Strong 12.4% annualized net premiums earned expansion over the last five years shows it’s capturing market share this cycle
- Share repurchases over the last five years enabled its annual earnings per share growth of 33% to outpace its revenue gains
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $67.70 per share, W. R. Berkley trades at 2.4x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
