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.
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 where you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
Hershey (HSY)
Consensus Price Target: $192.39 (3.6% implied return)
Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.
Why Are We Wary of HSY?
- Falling unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 5.2 percentage points
- Earnings per share fell by 3.8% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable
Hershey’s stock price of $185.71 implies a valuation ratio of 29.6x forward P/E. Dive into our free research report to see why there are better opportunities than HSY.
iHeartMedia (IHRT)
Consensus Price Target: $4.50 (-2.8% implied return)
Occasionally featuring celebrity hosts like Ryan Seacrest on its shows, iHeartMedia (NASDAQ: IHRT) is a leading multimedia company renowned for its extensive network of radio stations, digital platforms, and live events across the globe.
Why Do We Steer Clear of IHRT?
- Annual revenue growth of 4.9% over the last five years was below our standards for the consumer discretionary sector
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
At $4.63 per share, iHeartMedia trades at 8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why IHRT doesn’t pass our bar.
One Stock to Buy:
HCA Healthcare (HCA)
Consensus Price Target: $481.95 (2.1% implied return)
With roots dating back to 1968 and a network spanning 20 states, HCA Healthcare (NYSE: HCA) operates a network of 190 hospitals and 150+ outpatient facilities providing a full range of medical services across the US and England.
Why Is HCA a Good Business?
- Massive revenue base of $74.37 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Share repurchases over the last five years enabled its annual earnings per share growth of 21.2% to outpace its revenue gains
- Free cash flow margin grew by 11.2 percentage points over the last five years, giving the company more chips to play with
HCA Healthcare is trading at $472.07 per share, or 16.1x 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-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.
