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. Keeping that in mind, here is one stock poised to prove Wall Street wrong and two facing legitimate challenges.
Two Stocks to Sell:
Brown-Forman (BF.B)
Consensus Price Target: $27.79 (-1.7% implied return)
Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE:BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.
Why Are We Hesitant About BF.B?
- Products have few die-hard fans as sales have declined by 2.4% annually over the last three years
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
Brown-Forman’s stock price of $28.26 implies a valuation ratio of 16.8x forward P/E. Check out our free in-depth research report to learn more about why BF.B doesn’t pass our bar.
SouthState (SSB)
Consensus Price Target: $119.57 (10% implied return)
With roots dating back to the Great Depression era of 1933, SouthState (NYSE:SSB) is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.
Why Does SSB Fall Short?
- Estimated net interest income growth of 3.3% for the next 12 months implies demand will slow from its five-year trend
- Efficiency ratio is expected to worsen by 2.5 percentage points over the next year
- Performance over the past five years shows its incremental sales were less profitable, as its 6.5% annual earnings per share growth trailed its revenue gains
SouthState is trading at $108.69 per share, or 1.1x forward P/B. Read our free research report to see why you should think twice about including SSB in your portfolio.
One Stock to Watch:
Booking (BKNG)
Consensus Price Target: $237.36 (13.8% implied return)
Formerly known as The Priceline Group, Booking Holdings (NASDAQ:BKNG) is the world’s largest online travel agency.
Why Should BKNG Be on Your Watchlist?
- Platform is difficult to replicate at scale and results in a best-in-class gross margin of 87%
- Highly efficient business model is illustrated by its impressive 36.4% EBITDA margin, and it turbocharged its profits by achieving some fixed cost leverage
- Robust free cash flow margin of 35.3% gives it many options for capital deployment
At $208.51 per share, Booking trades at 14.3x forward EV/EBITDA. Is now the right 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.