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. That said, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two where the outlook is warranted.
Two Stocks to Sell:
Lantheus (LNTH)
Consensus Price Target: $111.58 (5.8% implied return)
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Why Does LNTH Give Us Pause?
- Annual revenue growth of 6.4% over the last two years was below our standards for the healthcare sector
- Estimated sales decline of 5% for the next 12 months implies a challenging demand environment
- Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 9.8 percentage points
Lantheus is trading at $105.50 per share, or 19.5x forward P/E. If you’re considering LNTH for your portfolio, see our FREE research report to learn more.
Live Oak Bancshares (LOB)
Consensus Price Target: $44.25 (1.2% implied return)
Founded during the 2008 financial crisis with a vision to reimagine small business banking through technology, Live Oak Bancshares (NYSE: LOB) is a bank holding company that specializes in providing online banking services and SBA-guaranteed loans to small businesses across targeted industries nationwide.
Why Are We Hesitant About LOB?
- Net interest margin of 3.3% reflects its high servicing and capital costs
- Earnings per share fell by 2.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
At $43.72 per share, Live Oak Bancshares trades at 1.5x forward P/B. Dive into our free research report to see why there are better opportunities than LOB.
One Stock to Watch:
NetApp (NTAP)
Consensus Price Target: $177.25 (11.8% implied return)
Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ: NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.
Why Are We Fans of NTAP?
- Average billings growth of 7.3% over the past two years enhances its liquidity and shows there is steady demand for its products
- Share buybacks catapulted its annual earnings per share growth to 15%, which outperformed its revenue gains over the last five years
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
NetApp’s stock price of $158.60 implies a valuation ratio of 18.2x 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
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.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
