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. 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:
DaVita (DVA)
Consensus Price Target: $185.57 (-6.1% implied return)
With over 2,600 dialysis centers across the United States and a presence in 13 countries, DaVita (NYSE: DVA) operates a network of dialysis centers providing treatment and care for patients with chronic kidney disease and end-stage kidney disease.
Why Are We Hesitant About DVA?
- Flat treatments over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Estimated sales growth of 2.6% for the next 12 months implies demand will slow from its two-year trend
- Free cash flow margin dropped by 1.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up
DaVita is trading at $197.65 per share, or 12.8x forward P/E. To fully understand why you should be careful with DVA, check out our full research report (it’s free).
HA Sustainable Infrastructure Capital (HASI)
Consensus Price Target: $47.87 (14.2% implied return)
With a proprietary "CarbonCount" metric that quantifies the environmental impact of each dollar invested, HA Sustainable Infrastructure Capital (NYSE: HASI) is an investment firm that finances and develops climate-positive infrastructure projects across renewable energy, energy efficiency, and ecological restoration.
Why Do We Think Twice About HASI?
- Incremental sales over the last two years were less profitable as its 9.7% annual earnings per share growth lagged its revenue gains
- Underwhelming 5.8% return on equity reflects management’s difficulties in finding profitable growth opportunities
HA Sustainable Infrastructure Capital’s stock price of $41.93 implies a valuation ratio of 14.3x forward P/E. Read our free research report to see why you should think twice about including HASI in your portfolio.
One Stock to Watch:
Astrana Health (ASTH)
Consensus Price Target: $42.44 (12.1% implied return)
Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ: ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.
Why Could ASTH Be a Winner?
- Impressive 55.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Forecasted revenue growth of 16.4% for the next 12 months indicates its momentum over the last two years is sustainable
- Earnings per share have massively outperformed its peers over the last five years, increasing by 13.2% annually
At $37.86 per share, Astrana Health trades at 12x 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
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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.
