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.
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 where you should be greedy instead of fearful and one facing legitimate challenges.
One Stock to Sell:
Prudential (PRU)
Consensus Price Target: $115.50 (13.8% implied return)
Recognized by its iconic Rock of Gibraltar logo symbolizing strength and stability since 1896, Prudential Financial (NYSE:PRU) provides life insurance, annuities, retirement solutions, investment management, and other financial services to individual and institutional customers globally.
Why Is PRU Risky?
- Insurance products are facing significant market challenges during this cycle as net premiums earned has declined by 2.3% annually over the last five years
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 12.2% annually over the last five years
Prudential is trading at $101.50 per share, or 1.2x forward P/B. Check out our free in-depth research report to learn more about why PRU doesn’t pass our bar.
Two Stocks to Watch:
Zscaler (ZS)
Consensus Price Target: $315.61 (12% implied return)
After successfully selling all four of his previous cybersecurity companies, Jay Chaudhry's fifth venture, Zscaler (NASDAQ:ZS) offers software-as-a-service that helps companies securely connect to applications and networks in the cloud.
Why Do We Like ZS?
- ARR growth averaged 24.3% over the last year, showing customers are willing to take multi-year bets on its offerings
- Forecasted revenue growth of 19.9% for the next 12 months indicates its momentum over the last three years is sustainable
- ZS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Zscaler’s stock price of $281.82 implies a valuation ratio of 14.3x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Tractor Supply (TSCO)
Consensus Price Target: $62.41 (4% implied return)
Started as a mail-order tractor parts business, Tractor Supply (NASDAQ:TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer.
Why Should TSCO Be on Your Watchlist?
- Rapidly increasing store base reflects a desire to sell in new markets and scale quickly
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable six-year growth trajectory
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $59.99 per share, Tractor Supply trades at 27.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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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