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 Wall Street’s pessimism is creating a buying opportunity and two where the outlook is warranted.
Two Stocks to Sell:
F5 (FFIV)
Consensus Price Target: $409 (-5% implied return)
Originally named after the F5 tornado, the most powerful on the meteorological scale, F5 (NASDAQ: FFIV) provides security and delivery solutions that protect applications across cloud, data center, and edge environments for large organizations.
Why Does FFIV Fall Short?
- Customers were hesitant to make long-term commitments to its software as its 3.3% average ARR growth over the last year was sluggish
- Estimated sales growth of 5.8% for the next 12 months implies demand will slow from its two-year trend
- Operating margin was unchanged over the last year, suggesting it failed to gain leverage on its fixed costs
F5’s stock price of $430.57 implies a valuation ratio of 7.2x forward price-to-sales. If you’re considering FFIV for your portfolio, see our FREE research report to learn more.
Columbia Banking System (COLB)
Consensus Price Target: $33.31 (3.9% implied return)
Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System (NASDAQ: COLB) operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.
Why Are We Cautious About COLB?
- Annual revenue growth of 9.6% over the last two years was below our standards for the banking sector
- Earnings per share fell by 2.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Annual tangible book value per share declines of 1.3% for the past five years show its capital management struggled during this cycle
Columbia Banking System is trading at $32.05 per share, or 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than COLB.
One Stock to Buy:
Cloudflare (NET)
Consensus Price Target: $247.52 (-7.6% 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 Is NET a Top Pick?
- Average billings growth of 34.2% over the last year enhances its liquidity and shows there is steady demand for its products
- Market share will likely rise over the next 12 months as its expected revenue growth of 28.4% is robust
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
At $267.84 per share, Cloudflare trades at 32.5x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
