
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. That said, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two where the outlook is warranted.
Two Stocks to Sell:
Paycom (PAYC)
Consensus Price Target: $203.81 (-3.9% implied return)
Pioneering the concept of employees doing their own payroll with its "Beti" technology, Paycom (NYSE:PAYC) provides cloud-based human capital management software that helps businesses manage the entire employment lifecycle from recruitment to retirement.
Why Are We Cautious About PAYC?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 9% underwhelmed
- Estimated sales growth of 7% for the next 12 months implies demand will slow from its two-year trend
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
Paycom’s stock price of $212.04 implies a valuation ratio of 4.3x forward price-to-sales. Check out our free in-depth research report to learn more about why PAYC doesn’t pass our bar.
Expedia (EXPE)
Consensus Price Target: $326.11 (3.9% implied return)
Originally founded as a part of Microsoft, Expedia (NASDAQ:EXPE) is one of the world’s leading online travel agencies.
Why Do We Think Twice About EXPE?
- Decision to emphasize platform growth over monetization has contributed to sluggish trends in its average revenue per booking
- Estimated sales growth of 6.4% for the next 12 months implies demand will slow from its three-year trend
- High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum
At $313.93 per share, Expedia trades at 8.6x forward EV/EBITDA. If you’re considering EXPE for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
First Solar (FSLR)
Consensus Price Target: $267.97 (11.8% implied return)
Headquartered in Arizona, First Solar (NASDAQ:FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.
Why Is FSLR a Good Business?
- Market share has increased this cycle as its 19.5% annual revenue growth over the last two years was exceptional
- Free cash flow turned positive over the last five years, indicating the company has passed a significant test
- Returns on capital are climbing as management makes more lucrative bets
First Solar is trading at $239.59 per share, or 12x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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.