Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
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 where you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
Amplitude (AMPL)
Consensus Price Target: $13.77 (-2.3% implied return)
Born from the realization that companies were flying blind when it came to understanding user behavior in their digital products, Amplitude (NASDAQ: AMPL) provides a digital analytics platform that helps businesses understand how people use their digital products to improve user experiences and drive revenue growth.
Why Does AMPL Give Us Pause?
- Net revenue retention rate of 104% trails the industry benchmark of 110%+ and shows it has a tough time increasing customer spending
- Persistent operating margin losses suggest the business manages its expenses poorly
- Low free cash flow margin of 6.7% for the last year gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Amplitude’s stock price of $14.10 implies a valuation ratio of 4.2x forward price-to-sales. Read our free research report to see why you should think twice about including AMPL in your portfolio.
PepsiCo (PEP)
Consensus Price Target: $155 (9.6% implied return)
With a history that goes back more than a century, PepsiCo (NASDAQ: PEP) is a household name in food and beverages today and best known for its flagship soda.
Why Does PEP Fall Short?
- Shrinking unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
- Projected sales growth of 3.3% for the next 12 months suggests sluggish demand
- Earnings per share lagged its peers over the last three years as they only grew by 5% annually
At $141.46 per share, PepsiCo trades at 16x forward P/E. If you’re considering PEP for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
APA Corporation (APA)
Consensus Price Target: $43.75 (2.6% implied return)
Operating in three continents with a history stretching back to 1954, APA Corporation (NASDAQ: APA) explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the U.S., Egypt, and the U.K. North Sea.
Why Is APA a Good Business?
- 4.8% annual revenue growth over the last ten years surpassed the sector average as its products resonated with customers
- Unparalleled revenue scale of $8.37 billion gives it advantageous pricing and terms with suppliers
- Attractive asset base leads to wonderful unit economics and a stellar gross margin of 67.8%
APA Corporation is trading at $42.65 per share, or 9.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
