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. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
Herc (HRI)
Consensus Price Target: $176.27 (22.7% implied return)
Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE: HRI) provides equipment rental and related services to a wide range of industries.
Why Are We Cautious About HRI?
- Efficiency has decreased over the last five years as its operating margin fell by 7.3 percentage points
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 22.1% annually while its revenue grew
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Herc is trading at $143.61 per share, or 19.7x forward P/E. To fully understand why you should be careful with HRI, check out our full research report (it’s free).
T. Rowe Price (TROW)
Consensus Price Target: $102.08 (8.4% implied return)
Founded in 1937 by Thomas Rowe Price Jr., who pioneered the growth stock investing approach, T. Rowe Price (NASDAQ: TROW) is an investment management firm that offers mutual funds, advisory services, and retirement planning solutions to individuals and institutions.
Why Are We Wary of TROW?
- Sales trends were unexciting over the last five years as its 3.5% annual growth was below the typical financials company
- Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable
T. Rowe Price’s stock price of $94.14 implies a valuation ratio of 9.4x forward P/E. Check out our free in-depth research report to learn more about why TROW doesn’t pass our bar.
One Stock to Watch:
Goldman Sachs (GS)
Consensus Price Target: $959.20 (4.7% implied return)
Founded in 1869 as a small commercial paper business in New York City, Goldman Sachs (NYSE: GS) is a global financial institution that provides investment banking, securities, asset management, and consumer banking services to corporations, governments, and individuals.
Why Does GS Catch Our Eye?
- Annual revenue growth of 12.3% over the last two years beat the sector average and underscores the unique value of its offerings
- Share repurchases over the last two years enabled its annual earnings per share growth of 49.9% to outpace its revenue gains
- Solid 10.8% annual tangible book value per share growth over the last two years indicates its risk management practices are paying off
At $916.02 per share, Goldman Sachs trades at 15.9x forward P/E. Is now a good time to buy? 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 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
