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 Wall Street’s pessimism is creating a buying opportunity and two where the skepticism is well-placed.
Two Stocks to Sell:
Red Rock Resorts (RRR)
Consensus Price Target: $51.50 (4.3% implied return)
Founded in 1976, Red Rock Resorts (NASDAQ:RRR) operates a range of casino resorts and entertainment properties, primarily in the Las Vegas metropolitan area.
Why Should You Dump RRR?
- 1.7% annual revenue growth over the last five years was slower than its consumer discretionary peers
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Diminishing returns on capital suggest its earlier profit pools are drying up
Red Rock Resorts is trading at $49.37 per share, or 30x forward P/E. If you’re considering RRR for your portfolio, see our FREE research report to learn more.
Hudson Technologies (HDSN)
Consensus Price Target: $7.31 (1.7% implied return)
Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.
Why Does HDSN Fall Short?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 15.5% annually over the last two years
- Earnings per share have dipped by 51.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
At $7.19 per share, Hudson Technologies trades at 9.2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why HDSN doesn’t pass our bar.
One Stock to Watch:
HCA Healthcare (HCA)
Consensus Price Target: $382.61 (0% 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 Are We Positive On HCA?
- Massive revenue base of $71.59 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Share buybacks catapulted its annual earnings per share growth to 20.7%, which outperformed its revenue gains over the last five years
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
HCA Healthcare’s stock price of $382.49 implies a valuation ratio of 14.8x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.