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.
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 are two stocks where you should be greedy instead of fearful and one where the skepticism is well-placed.
One Healthcare Stock to Sell:
Danaher (DHR)
Consensus Price Target: $229.09 (7.7% implied return)
Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE: DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.
Why Are We Cautious About DHR?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 7.8 percentage points
- Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 1.6% annually
At $212.75 per share, Danaher trades at 23.6x forward P/E. To fully understand why you should be careful with DHR, check out our full research report (it’s free).
Two Healthcare Stocks to Buy:
DexCom (DXCM)
Consensus Price Target: $94.48 (7.3% implied return)
Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ: DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.
Why Should You Buy DXCM?
- Average organic revenue growth of 12% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Free cash flow margin jumped by 20.2 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Rising returns on capital show management is finding more attractive investment opportunities
DexCom’s stock price of $88.09 implies a valuation ratio of 31x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Humana (HUM)
Consensus Price Target: $419.04 (9.2% implied return)
With over 80% of its revenue derived from federal government contracts, Humana (NYSE: HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.
Why Do We Love HUM?
- Solid 15.1% annual revenue growth over the last two years indicates its offerings solve complex business issues
- Dominant market position is represented by its $145.8 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
- ROIC punches in at 32.9%, illustrating management’s expertise in identifying profitable investments
Humana is trading at $383.88 per share, or 31.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
