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. That said, here is one stock poised to prove Wall Street wrong and two where the outlook is warranted.

Two Stocks to Sell:

Hershey (HSY)

Consensus Price Target: $181.91 (0% 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?

1. Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
2. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 4.4 percentage points
3. Flat earnings per share over the last three years underperformed the sector average

Hershey’s stock price of $182 implies a valuation ratio of 31.9x forward P/E. Dive into our free research report to see why there are better opportunities than HSY.

American Financial Group (AFG)

Consensus Price Target: $130.60 (-1.6% implied return)

With roots dating back to 1872 and a business model that empowers local decision-making, American Financial Group (NYSE: AFG) is an insurance holding company that specializes in commercial property and casualty insurance products for businesses through its Great American Insurance Group.

Why Is AFG Not Exciting?

1. Sluggish 6.1% annualized growth in net premiums earned over the last two years indicates the firm trailed its insurance peers
2. Earnings per share fell by 5.5% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
3. Annual book value per share declines of 5.3% for the past five years show its capital management struggled during this cycle

American Financial Group is trading at $132.75 per share, or 2.3x forward P/B. Check out our free in-depth research report to learn more about why AFG doesn’t pass our bar.

One Stock to Watch:

SPX Technologies (SPXC)

Consensus Price Target: $201.64 (7.3% implied return)

SPX Technologies (NYSE: SPXC) is an industrial conglomerate catering to the energy, manufacturing, automotive, and aerospace sectors.

Why Could SPXC Be a Winner?

1. Annual revenue growth of 12.5% over the last two years was superb and indicates its market share increased during this cycle
2. Operating margin expanded by 8.1 percentage points over the last five years as it scaled and became more efficient
3. Earnings per share have massively outperformed its peers over the last two years, increasing by 22.2% annually

At $188 per share, SPX Technologies trades at 28.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

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 Tecnoglass (+1,754% 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

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