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. Keeping that in mind, here are two stocks where you should be greedy instead of fearful and one where the skepticism is well-placed.
One Stock to Sell:
J. M. Smucker (SJM)
Consensus Price Target: $110.36 (4% implied return)
Best known for its fruit jams and spreads, J.M Smucker (NYSE:SJM) is a packaged foods company whose products span from peanut butter and coffee to pet food.
Why Do We Avoid SJM?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Efficiency has decreased over the last year as its operating margin fell by 23.7 percentage points
- Underwhelming 2.8% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam
J. M. Smucker’s stock price of $106.08 implies a valuation ratio of 10.4x forward P/E. To fully understand why you should be careful with SJM, check out our full research report (it’s free).
Two Stocks to Watch:
Palantir (PLTR)
Consensus Price Target: $104.96 (-31.6% implied return)
Started by Peter Thiel after seeing US defence agencies struggle in the aftermath of the 2001 terrorist attacks, Palantir (NYSE:PLTR) offers software as a service platform that helps government agencies and large enterprises use data to make better decisions.
Why Is PLTR a Top Pick?
- Billings have averaged 38.6% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $153.40 per share, Palantir trades at 94.4x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stryker (SYK)
Consensus Price Target: $422.71 (8.6% implied return)
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE:SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Do We Watch SYK?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 10.4% over the past two years
- Revenue base of $23.22 billion gives it economies of scale and some negotiating power
- Free cash flow generation is better than most peers and allows it to explore new investment opportunities
Stryker is trading at $389.40 per share, or 28.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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