When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as 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. That said, here is one stock where you should be greedy instead of fearful and two where the outlook is warranted.

Two Stocks to Sell:

Victoria's Secret (VSCO)

Consensus Price Target: $23.10 (-12.9% implied return)

Spun off from L Brands in 2020, Victoria’s Secret (NYSE: VSCO) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances.

Why Do We Think VSCO Will Underperform?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
2. Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
3. Earnings per share have contracted by 23.9% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

At $26.52 per share, Victoria's Secret trades at 14.5x forward P/E. If you’re considering VSCO for your portfolio, see our FREE research report to learn more.

Delta (DAL)

Consensus Price Target: $67.81 (12.5% implied return)

One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE: DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.

Why Is DAL Risky?

1. Number of revenue passenger miles has disappointed over the past two years, indicating weak demand for its offerings
2. Estimated sales growth of 2.3% for the next 12 months implies demand will slow from its two-year trend
3. Low returns on capital reflect management’s struggle to allocate funds effectively

Delta’s stock price of $60.30 implies a valuation ratio of 10.2x forward P/E. Dive into our free research report to see why there are better opportunities than DAL.

One Stock to Watch:

AZZ (AZZ)

Consensus Price Target: $125.89 (5.3% implied return)

Responsible for projects like nuclear facilities, AZZ (NYSE: AZZ) is a provider of metal coating and power infrastructure solutions.

Why Does AZZ Stand Out?

1. Highly efficient business model is illustrated by its impressive 14.7% operating margin, and its operating leverage amplified its profits over the last five years
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 24.5% outpaced its revenue gains
3. Free cash flow margin grew by 13.5 percentage points over the last five years, giving the company more chips to play with

AZZ is trading at $119.54 per share, or 19.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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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