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.
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 you should be greedy instead of fearful and two facing legitimate challenges.
Two Stocks to Sell:
Myriad Genetics (MYGN)
Consensus Price Target: $3.37 (-10.3% implied return)
Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ: MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health.
Why Should You Sell MYGN?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 7.4% annually
- Negative EBITDA restricts its access to capital and increases the probability of shareholder dilution if things turn unexpectedly
At $3.75 per share, Myriad Genetics trades at 0.5x forward price-to-sales. Check out our free in-depth research report to learn more about why MYGN doesn’t pass our bar.
Oaktree Specialty Lending (OCSL)
Consensus Price Target: $12.50 (2% implied return)
Managed by Oaktree Capital Management, one of the world's premier alternative investment firms, Oaktree Specialty Lending (NASDAQ: OCSL) is a business development company that provides customized financing solutions to mid-market companies across various industries.
Why Do We Avoid OCSL?
- Annual sales declines of 13.3% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share fell by 1.8% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 6.2% annually over the last five years
Oaktree Specialty Lending is trading at $12.25 per share, or 9.1x forward P/E. To fully understand why you should be careful with OCSL, check out our full research report (it’s free).
One Stock to Buy:
McKesson (MCK)
Consensus Price Target: $980.73 (10.6% implied return)
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Do We Love MCK?
- Annual revenue growth of 14.5% over the last two years beat the sector average and underscores the unique value of its offerings
- Massive revenue base of $411 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
McKesson’s stock price of $886.80 implies a valuation ratio of 19.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
