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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here is one stock where you should be greedy instead of fearful and two where the skepticism is well-placed.

Two Stocks to Sell:

Starbucks (SBUX)

Consensus Price Target: $99.36 (2.8% implied return)

Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ: SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.

Why Do We Avoid SBUX?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
2. Efficiency has decreased over the last year as its operating margin fell by 6.8 percentage points
3. Earnings per share fell by 5.9% annually over the last six years while its revenue grew, showing its incremental sales were much less profitable

Starbucks is trading at $96.63 per share, or 38x forward P/E. Check out our free in-depth research report to learn more about why SBUX doesn’t pass our bar.

Warner Bros. Discovery (WBD)

Consensus Price Target: $29.60 (7.7% implied return)

Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ: WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.

Why Should You Sell WBD?

1. Annual sales declines of 5% for the past two years show its products and services struggled to connect with the market
2. Free cash flow margin is on track to jump by 1.5 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $27.48 per share, Warner Bros. Discovery trades at 11.2x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including WBD in your portfolio.

One Stock to Watch:

ExxonMobil (XOM)

Consensus Price Target: $160.29 (4% implied return)

One of the successor companies to John D. Rockefeller's Standard Oil monopoly that was broken up in 1911, ExxonMobil (NYSE: XOM) explores for and produces crude oil and natural gas, refines and sells petroleum products, and manufactures petrochemicals.

Why Are We Fans of XOM?

1. Enormous revenue base of $332.2 billion provides significant leverage in supplier negotiations
2. EBITDA margin expanded by 1.9 percentage points over the last five years as it scaled and became more efficient
3. Solid free cash flow generation relative to most peers gives it a cushion and grants it various reinvestment opportunities

ExxonMobil’s stock price of $154.14 implies a valuation ratio of 16.8x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.