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 is one stock where Wall Street’s pessimism is creating a buying opportunity and two where the outlook is warranted.
Two Stocks to Sell:
Custom Truck One Source (CTOS)
Consensus Price Target: $7.75 (2.2% implied return)
Inspired by a family gas station, Custom Truck One Source (NYSE: CTOS) is a distributor of trucks and heavy equipment.
Why Is CTOS Not Exciting?
- Annual revenue growth of 2.9% over the last two years was below our standards for the industrials sector
- Earnings per share have dipped by 47.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Free cash flow margin shrank by 19.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $7.58 per share, Custom Truck One Source trades at 8.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why CTOS doesn’t pass our bar.
Clear Channel Outdoor (CCO)
Consensus Price Target: $2.20 (-8.1% implied return)
With thousands of digital and traditional displays lighting up America's highways, city streets, and airports, Clear Channel Outdoor (NYSE: CCO) operates billboards, street furniture, and airport displays, connecting advertisers with millions of consumers across the US.
Why Does CCO Fall Short?
- Annual sales declines of 5.3% for the past five years show its products and services struggled to connect with the market during this cycle
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- 13× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Clear Channel Outdoor’s stock price of $2.40 implies a valuation ratio of 14.5x forward EV-to-EBITDA. To fully understand why you should be careful with CCO, check out our full research report (it’s free).
One Stock to Watch:
Amgen (AMGN)
Consensus Price Target: $350.04 (-6.3% implied return)
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Why Could AMGN Be a Winner?
- Annual revenue growth of 14.2% over the last two years beat the sector average and underscores the unique value of its offerings
- Revenue base of $36.75 billion gives it economies of scale and some negotiating power
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Amgen is trading at $373.55 per share, or 16.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
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 6 Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
