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.
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 where you should be greedy instead of fearful and two facing legitimate challenges.
Two Stocks to Sell:
Shutterstock (SSTK)
Consensus Price Target: $26.93 (11.6% implied return)
Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.
Why Is SSTK Not Exciting?
- Preference for prioritizing user growth over monetization has led to 5.4% annual drops in its average revenue per request
- Estimated sales growth of 1.6% for the next 12 months implies demand will slow from its three-year trend
- Capital intensity has ramped up over the last few years as its free cash flow margin decreased by 16.5 percentage points
Shutterstock is trading at $24.13 per share, or 3.2x forward EV/EBITDA. To fully understand why you should be careful with SSTK, check out our full research report (it’s free for active Edge members).
ChargePoint (CHPT)
Consensus Price Target: $11.69 (5.2% implied return)
The most prominent EV charging company during the COVID bull market, ChargePoint (NYSE:CHPT) is a provider of electric vehicle charging technology solutions in North America and Europe.
Why Are We Cautious About CHPT?
- Annual sales declines of 15.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Negative free cash flow raises questions about the return timeline for its investments
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
ChargePoint’s stock price of $11.11 implies a valuation ratio of 0.6x forward price-to-sales. Read our free research report to see why you should think twice about including CHPT in your portfolio.
One Stock to Buy:
Cal-Maine (CALM)
Consensus Price Target: $100 (9.7% implied return)
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.
Why Are We Bullish on CALM?
- Remarkable 27.7% revenue growth over the last three years demonstrates its ability to capture significant market share
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 66.4% outpaced its revenue gains
- Robust free cash flow margin of 22.7% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety
At $91.14 per share, Cal-Maine trades at 13.2x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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 Tecnoglass (+1,754% 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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