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.

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 is one stock where Wall Street’s pessimism is creating a buying opportunity and two where the skepticism is well-placed.

Two Stocks to Sell:

Analog Devices (ADI)

Consensus Price Target: $242.32 (8.5% implied return)

Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ: ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.

Why Does ADI Give Us Pause?

1. Sales tumbled by 13.8% annually over the last two years, showing market trends are working against its favor during this cycle
2. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 8.1 percentage points
3. Underwhelming 6.2% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam

At $223.40 per share, Analog Devices trades at 29.8x forward P/E. If you’re considering ADI for your portfolio, see our FREE research report to learn more.

Robert Half (RHI)

Consensus Price Target: $49.30 (1.8% implied return)

With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE: RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.

Why Do We Pass on RHI?

1. Sales tumbled by 1.5% annually over the last five years, showing market trends are working against its favor during this cycle
2. Sales were less profitable over the last five years as its earnings per share fell by 11.9% annually, worse than its revenue declines
3. Waning returns on capital imply its previous profit engines are losing steam

Robert Half’s stock price of $48.43 implies a valuation ratio of 17.9x forward P/E. Dive into our free research report to see why there are better opportunities than RHI.

One Stock to Buy:

Badger Meter (BMI)

Consensus Price Target: $230.16 (-5.3% implied return)

The developer of the world’s first frost-proof water meter in 1905, Badger Meter (NYSE: BMI) provides water control and measure equipment to various industries.

Why Is BMI a Top Pick?

1. Market share has increased this cycle as its 20% annual revenue growth over the last two years was exceptional
2. Earnings per share have massively outperformed its peers over the last two years, increasing by 36.6% annually
3. BMI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Badger Meter is trading at $243 per share, or 52.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 176% over the last five years.

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.