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.
Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two facing legitimate challenges.
Two Stocks to Sell:
Kohl's (KSS)
Consensus Price Target: $17.85 (-8.3% implied return)
Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE: KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.
Why Is KSS Risky?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Operating margin of 3.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Kohl’s stock price of $19.45 implies a valuation ratio of 13.8x forward P/E. If you’re considering KSS for your portfolio, see our FREE research report to learn more.
Expeditors (EXPD)
Consensus Price Target: $177.71 (-5% implied return)
Expeditors (NYSE: EXPD) offers air and ocean freight as well as brokerage services.
Why Are We Hesitant About EXPD?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Gross margin of 13.5% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $187.05 per share, Expeditors trades at 24x forward P/E. Read our free research report to see why you should think twice about including EXPD in your portfolio.
One Stock to Watch:
CACI (CACI)
Consensus Price Target: $717.43 (7.1% implied return)
Founded to commercialize SIMSCRIPT, CACI International (NYSE: CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts.
Why Could CACI Be a Winner?
- Impressive 11.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Estimated revenue growth of 12.7% for the next 12 months implies its momentum over the last two years will continue
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
CACI is trading at $670.04 per share, or 20.2x forward P/E. Is now the right time to buy? 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 is 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% 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.
