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.

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 poised to prove Wall Street wrong and two where the skepticism is well-placed.

Two Stocks to Sell:

American Outdoor Brands (AOUT)

Consensus Price Target: $12.50 (-7.3% implied return)

Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ: AOUT) is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.

Why Are We Out on AOUT?

1. Products and services aren’t resonating with the market as its revenue declined by 7.2% annually over the last five years
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 0.6% for the last two years
3. Returns on capital are increasing as management makes relatively better investment decisions

At $13.49 per share, American Outdoor Brands trades at 30.9x forward P/E. To fully understand why you should be careful with AOUT, check out our full research report (it’s free).

Centene (CNC)

Consensus Price Target: $61.35 (-3.9% implied return)

Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE: CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.

Why Are We Cautious About CNC?

1. Customer growth was choppy over the past two years, suggesting that increasing competition is causing challenges in landing new contracts
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 15.2% annually
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Centene’s stock price of $63.82 implies a valuation ratio of 18.2x forward P/E. Dive into our free research report to see why there are better opportunities than CNC.

One Stock to Watch:

e.l.f. Beauty (ELF)

Consensus Price Target: $71.63 (3% implied return)

Short for "eyes, lips, face", e.l.f. Beauty (NYSE: ELF) is a developer of high-quality beauty products at accessible price points.

Why Is ELF on Our Radar?

1. Annual revenue growth of 41.4% over the last three years was superb and indicates its market share is rising
2. Differentiated product offerings are difficult to replicate at scale and result in a best-in-class gross margin of 71%
3. Earnings per share grew by 23.8% annually over the last three years and trumped its peers

e.l.f. Beauty is trading at $69.55 per share, or 20.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.