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. That said, 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:
Appian (APPN)
Consensus Price Target: $26.20 (15.1% implied return)
Powering billions of transactions daily since its founding in 1999, Appian (NASDAQ: APPN) provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge.
Why Are We Wary of APPN?
- Estimated sales growth of 10.5% for the next 12 months implies demand will slow from its two-year trend
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $22.77 per share, Appian trades at 2.1x forward price-to-sales. If you’re considering APPN for your portfolio, see our FREE research report to learn more.
Illumina (ILMN)
Consensus Price Target: $147.17 (-12.6% implied return)
Pioneering the ability to read the human genome at unprecedented speed and affordability, Illumina (NASDAQ: ILMN) develops and sells advanced DNA sequencing and microarray technologies that allow researchers and clinicians to analyze genetic variations and functions.
Why Are We Cautious About ILMN?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- ROIC of 0.7% reflects management’s challenges in identifying attractive investment opportunities
Illumina’s stock price of $168.31 implies a valuation ratio of 30x forward P/E. To fully understand why you should be careful with ILMN, check out our full research report (it’s free).
One Stock to Buy:
Philip Morris (PM)
Consensus Price Target: $193.86 (6% implied return)
Founded in 1847, Philip Morris International (NYSE: PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.
Why Is PM a Top Pick?
- Products command premium prices and lead to a best-in-class gross margin of 66.5%
- Highly efficient business model is illustrated by its impressive 36.5% operating margin
- Robust free cash flow margin of 26.1% gives it many options for capital deployment
Philip Morris is trading at $182.93 per share, or 21.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
