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 are two stocks where Wall Street’s pessimism is creating a buying opportunity and one where the outlook is warranted.
One Stock to Sell:
Brown-Forman (BF.B)
Consensus Price Target: $30.80 (0.1% implied return)
Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE:BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.
Why Are We Wary of BF.B?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Estimated sales decline of 4% for the next 12 months implies an even more challenging demand environment
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 6 percentage points
Brown-Forman is trading at $30.76 per share, or 18.8x forward P/E. Read our free research report to see why you should think twice about including BF.B in your portfolio.
Two Stocks to Watch:
Ulta (ULTA)
Consensus Price Target: $616.91 (2.7% implied return)
Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ:ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.
Why Could ULTA Be a Winner?
- Same-store sales growth lends it the confidence to gradually expand its store base so it can reach more customers
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 2.6% over the past two years
- Industry-leading 32.3% return on capital demonstrates management’s skill in finding high-return investments
Ulta’s stock price of $600.58 implies a valuation ratio of 21.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Amalgamated Financial (AMAL)
Consensus Price Target: $32 (0% implied return)
Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.
Why Are We Fans of AMAL?
- Net interest margin increased by 16.3 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Annual tangible book value per share growth of 20.5% over the last two years was superb and indicates its capital strength increased during this cycle
At $31.99 per share, Amalgamated Financial trades at 1.2x forward P/B. 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
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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
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