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.
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 you should be greedy instead of fearful and one facing legitimate challenges.
One Stock to Sell:
Boot Barn (BOOT)
Consensus Price Target: $190.43 (0.3% implied return)
With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE:BOOT) is a western-inspired apparel and footwear retailer.
Why Is BOOT Not Exciting?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Subscale operations are evident in its revenue base of $1.99 billion, meaning it has fewer distribution channels than its larger rivals
- Free cash flow margin dropped by 3.9 percentage points over the last year, implying the company became more capital intensive as competition picked up
Boot Barn is trading at $189.80 per share, or 27x forward P/E. Read our free research report to see why you should think twice about including BOOT in your portfolio.
Two Stocks to Watch:
Coherent (COHR)
Consensus Price Target: $103.94 (-3.1% implied return)
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE:COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Do We Like COHR?
- Annual revenue growth of 22.9% over the past five years was outstanding, reflecting market share gains this cycle
- Economies of scale give it some operating leverage when demand rises
- Sales outlook for the upcoming 12 months calls for 12% growth, an acceleration from its two-year trend
At $107.27 per share, Coherent trades at 26.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Hims & Hers Health (HIMS)
Consensus Price Target: $48.36 (-26.3% implied return)
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Why Is HIMS a Good Business?
- Customer trends over the past two years show it’s maintaining a steady flow of new contracts that can potentially increase in value over time
- Earnings per share have massively outperformed its peers over the last four years, increasing by 37% annually
- Free cash flow margin grew by 23.5 percentage points over the last five years, giving the company more chips to play with
Hims & Hers Health’s stock price of $65.60 implies a valuation ratio of 50.1x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
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