Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like 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 are two stocks where Wall Street’s pessimism is creating a buying opportunity and one where the skepticism is well-placed.

One Stock to Sell:

Align Technology (ALGN)

Consensus Price Target: $183.87 (9.8% implied return)

Pioneering an alternative to traditional metal braces with nearly invisible plastic aligners, Align Technology (NASDAQ: ALGN) designs and manufactures Invisalign clear aligners, iTero intraoral scanners, and dental CAD/CAM software for orthodontic and restorative treatments.

Why Do We Think Twice About ALGN?

1. Disappointing clear aligner shipments over the past two years imply it may need to invest in improvements to get back on track
2. Free cash flow margin shrank by 9.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $167.50 per share, Align Technology trades at 15.5x forward P/E. Check out our free in-depth research report to learn more about why ALGN doesn’t pass our bar.

Two Stocks to Watch:

Carvana (CVNA)

Consensus Price Target: $481.27 (1.6% implied return)

Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.

Why Should CVNA Be on Your Watchlist?

1. Has the opportunity to boost monetization through new features and premium offerings as its retail units sold have grown by 31.4% annually over the last two years
2. Incremental sales over the last three years have been highly profitable as its earnings per share increased by 38.5% annually, topping its revenue gains
3. Free cash flow margin increased by 19.3 percentage points over the last few years, giving the company more capital to invest or return to shareholders

Carvana is trading at $473.61 per share, or 26.5x forward EV/EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Moody's (MCO)

Consensus Price Target: $575.53 (9.6% implied return)

Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE: MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.

Why Is MCO a Good Business?

1. Solid 14.5% annual revenue growth over the last two years indicates its offering’s solve complex business issues
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Industry-leading 63.8% return on equity demonstrates management’s skill in finding high-return investments

Moody’s stock price of $525.05 implies a valuation ratio of 32.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.