
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.
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 poised to prove Wall Street wrong and two where the outlook is warranted.
Two Stocks to Sell:
Kraft Heinz (KHC)
Consensus Price Target: $23.47 (-5.8% implied return)
The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ:KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.
Why Is KHC Risky?
- Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Sales are projected to tank by 2.2% over the next 12 months as its demand continues evaporating
- Operating margin declined by 25.1 percentage points over the last year as its sales cratered
At $24.92 per share, Kraft Heinz trades at 12.6x forward P/E. Check out our free in-depth research report to learn more about why KHC doesn’t pass our bar.
Schneider (SNDR)
Consensus Price Target: $33.36 (-7.2% implied return)
Employing thousands of drivers across the country to make deliveries, Schneider (NYSE:SNDR) makes full truckload and intermodal deliveries regionally and across borders.
Why Should You Sell SNDR?
- Sales trends were unexciting over the last two years as its 2.6% annual growth was below the typical industrials company
- Earnings per share have contracted by 14.9% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Schneider’s stock price of $35.94 implies a valuation ratio of 34.6x forward P/E. Dive into our free research report to see why there are better opportunities than SNDR.
One Stock to Buy:
Eli Lilly (LLY)
Consensus Price Target: $1,219 (-0.1% implied return)
Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE:LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.
Why Should You Buy LLY?
- Annual revenue growth of 41.8% over the past two years was outstanding, reflecting market share gains this cycle
- Adjusted operating margin improvement of 22.9 percentage points over the last two years demonstrates its ability to scale efficiently
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 29.6% exceeded its revenue gains over the last five years
Eli Lilly is trading at $1,220 per share, or 33.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.