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.

Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. 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:

Union Pacific (UNP)

Consensus Price Target: $261.20 (15% implied return)

Part of the transcontinental railroad project, Union Pacific (NYSE: UNP) is a freight transportation company that operates a major railroad network.

Why Do We Pass on UNP?

1. Weak unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 2.9% annually
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3.9 percentage points

At $227.21 per share, Union Pacific trades at 19.1x forward P/E. Read our free research report to see why you should think twice about including UNP in your portfolio.

CVS Health (CVS)

Consensus Price Target: $82.50 (5.9% implied return)

With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE: CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.

Why Is CVS Not Exciting?

1. Sizable revenue base leads to growth challenges as its 6.8% annual revenue increases over the last two years fell short of other healthcare companies
2. Earnings per share fell by 4.8% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Free cash flow margin shrank by 2.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

CVS Health is trading at $77.92 per share, or 11.6x forward P/E. To fully understand why you should be careful with CVS, check out our full research report (it’s free for active Edge members).

One Stock to Buy:

HCA Healthcare (HCA)

Consensus Price Target: $407 (-2.2% implied return)

With roots dating back to 1968 and a network spanning 20 states, HCA Healthcare (NYSE: HCA) operates a network of 190 hospitals and 150+ outpatient facilities providing a full range of medical services across the US and England.

Why Are We Bullish on HCA?

1. Dominant market position is represented by its $72.7 billion in revenue, which creates significant barriers to entry in this highly regulated industry
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 17.5% exceeded its revenue gains over the last five years
3. Free cash flow margin grew by 8.9 percentage points over the last five years, giving the company more chips to play with

HCA Healthcare’s stock price of $416.24 implies a valuation ratio of 15.2x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

Trump’s April 2025 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 5 Growth Stocks for this month. 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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