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.
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. That said, here are two stocks poised to prove Wall Street wrong and one facing legitimate challenges.
One Stock to Sell:
Yext (YEXT)
Consensus Price Target: $9.44 (8.1% implied return)
Built to solve the problem of inconsistent business information scattered across the internet, Yext (NYSE:YEXT) provides a digital presence platform that helps businesses manage their information across websites, maps, apps, and search engines.
Why Does YEXT Fall Short?
- Underwhelming ARR growth of 9.1% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
- Projected sales growth of 4.3% for the next 12 months suggests sluggish demand
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
At $8.73 per share, Yext trades at 2.5x forward price-to-sales. Read our free research report to see why you should think twice about including YEXT in your portfolio.
Two Stocks to Buy:
Cloudflare (NET)
Consensus Price Target: $209.01 (-7.7% implied return)
With a massive network spanning more than 310 cities in over 120 countries, Cloudflare (NYSE:NET) provides a global network that delivers security, performance and reliability services to protect websites, applications, and corporate networks.
Why Are We Backing NET?
- Average billings growth of 30.3% over the last year enhances its liquidity and shows there is steady demand for its products
- Expected revenue growth of 26.3% for the next year suggests its market share will rise
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Cloudflare’s stock price of $226.56 implies a valuation ratio of 33x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
CECO Environmental (CECO)
Consensus Price Target: $51.50 (4.4% implied return)
With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.
Why Should You Buy CECO?
- Impressive 18.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Market share is on track to rise over the next 12 months as its 23% projected revenue growth implies demand will accelerate from its two-year trend
- Adjusted operating margin improvement of 11.8 percentage points over the last five years demonstrates its ability to scale efficiently
CECO Environmental is trading at $49.33 per share, or 38.9x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 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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