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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here is one stock poised to prove Wall Street wrong and two where the outlook is warranted.
Two Stocks to Sell:
Expedia (EXPE)
Consensus Price Target: $268.12 (8.5% implied return)
Originally founded as a part of Microsoft, Expedia (NASDAQ: EXPE) is one of the world’s leading online travel agencies.
Why Are We Hesitant About EXPE?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 8.3% for the last three years
- Preference for prioritizing user growth over monetization has led to 1.7% annual drops in its average revenue per booking
- Excessive marketing spend signals little organic demand and traction for its platform
Expedia is trading at $247.12 per share, or 9.4x forward EV/EBITDA. Read our free research report to see why you should think twice about including EXPE in your portfolio.
Seacoast Banking (SBCF)
Consensus Price Target: $33.25 (13.9% implied return)
Founded during the Florida land boom of 1926 and surviving the Great Depression, Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is a financial holding company that provides commercial and retail banking, wealth management, and mortgage services throughout Florida.
Why Are We Wary of SBCF?
- Sales stagnated over the last two years and signal the need for new growth strategies
- 2.7% annual tangible book value per share growth over the last five years was slower than its banking peers
- Forecasted tangible book value per share decline of 1.8% for the upcoming 12 months implies profitability will deteriorate significantly
Seacoast Banking’s stock price of $29.21 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why SBCF doesn’t pass our bar.
One Stock to Buy:
Watts Water Technologies (WTS)
Consensus Price Target: $292.33 (7.7% implied return)
Founded in 1874, Watts Water (NYSE: WTS) specializes in manufacturing water products and systems for residential, commercial, and industrial applications globally.
Why Are We Bullish on WTS?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 9.3% annual sales growth over the last five years
- Superior product capabilities and pricing power lead to a best-in-class gross margin of 45.9%
- Share buybacks catapulted its annual earnings per share growth to 21.8%, which outperformed its revenue gains over the last five years
At $271.33 per share, Watts Water Technologies trades at 24.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
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 9 Market-Beating Stocks. 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-micro-cap company Kadant (+351% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
