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.
Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. Keeping that in mind, here is one stock poised to prove Wall Street wrong and two where the skepticism is well-placed.
Two Stocks to Sell:
Lincoln Financial Group (LNC)
Consensus Price Target: $46.33 (4% implied return)
Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE: LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.
Why Are We Out on LNC?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Net premiums earned remained stagnant over the last five years, indicating expansion challenges this cycle
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 14.9% annually over the last five years
Lincoln Financial Group’s stock price of $44.53 implies a valuation ratio of 0.9x forward P/B. If you’re considering LNC for your portfolio, see our FREE research report to learn more.
Stellar Bancorp (STEL)
Consensus Price Target: $32.40 (4.7% implied return)
Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp (NYSE: STEL) is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.
Why Do We Avoid STEL?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 5.8% annually over the last two years
- 36 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 8.6% annually, worse than its revenue
Stellar Bancorp is trading at $30.94 per share, or 0.9x forward P/B. To fully understand why you should be careful with STEL, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Capital One (COF)
Consensus Price Target: $268.95 (10.9% implied return)
Starting as a credit card company in 1988 before expanding into a full-service bank, Capital One (NYSE: COF) is a financial services company that offers credit cards, auto loans, banking services, and commercial lending to consumers and businesses.
Why Are We Fans of COF?
- Annual revenue growth of 15.2% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 44.9% annually, topping its revenue gains
- ROE of 10.9% shows management can invest its resources competently
At $242.50 per share, Capital One trades at 12.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
