Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. 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:
BrightSpring Health Services (BTSG)
Consensus Price Target: $31.50 (4.9% implied return)
Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.
Why Are We Hesitant About BTSG?
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 2.4 percentage points
- Earnings per share have dipped by 49.3% annually over the past four years, which is concerning because stock prices follow EPS over the long term
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.3 percentage points
At $30.03 per share, BrightSpring Health Services trades at 27.4x forward P/E. Check out our free in-depth research report to learn more about why BTSG doesn’t pass our bar.
Two Stocks to Buy:
DoorDash (DASH)
Consensus Price Target: $300.71 (13.9% implied return)
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE: DASH) operates an on-demand food delivery platform.
Why Will DASH Outperform?
- Orders have increased by an average of 20.3% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Additional sales over the last three years increased its profitability as the 109% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin expanded by 11.9 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
DoorDash’s stock price of $264.11 implies a valuation ratio of 35.1x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Comfort Systems (FIX)
Consensus Price Target: $834.40 (-0.2% implied return)
Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.
Why Is FIX a Top Pick?
- Sales pipeline is in good shape as its backlog averaged 29.5% growth over the past two years
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Improving returns on capital reflect management’s ability to monetize investments
Comfort Systems is trading at $836.25 per share, or 34.1x 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
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum 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-small-cap company Comfort Systems (+782% 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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