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. That said, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two facing legitimate challenges.

Two Stocks to Sell:

ON24 (ONTF)

Consensus Price Target: $5 (-17.2% implied return)

Powering over 1,700 companies' virtual marketing efforts since 1998, ON24 (NYSE: ONTF) provides a cloud-based platform that enables businesses to create interactive digital experiences and capture actionable data from customer engagement.

Why Is ONTF Risky?

1. Products, pricing, or go-to-market strategy need some adjustments as its billings have averaged 3.3% declines over the last year
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. Persistent operating margin losses suggest the business manages its expenses poorly

ON24’s stock price of $6.04 implies a valuation ratio of 1.9x forward price-to-sales. To fully understand why you should be careful with ONTF, check out our full research report (it’s free).

Elanco (ELAN)

Consensus Price Target: $19 (-3.8% implied return)

Originally established as a division of pharmaceutical giant Eli Lilly before becoming independent in 2018, Elanco Animal Health (NYSE: ELAN) develops and sells medications, vaccines, and other health products for pets and farm animals across more than 90 countries.

Why Are We Wary of ELAN?

1. Sales trends were unexciting over the last two years as its 1.8% annual growth was below the typical healthcare company
2. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
3. Negative returns on capital show management lost money while trying to expand the business

Elanco is trading at $19.75 per share, or 22.4x forward P/E. Dive into our free research report to see why there are better opportunities than ELAN.

One Stock to Watch:

W. R. Berkley (WRB)

Consensus Price Target: $72.73 (-3.8% implied return)

Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE: WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.

Why Is WRB on Our Radar?

1. Net premiums earned expanded by 12.7% annually over the last five years, demonstrating exceptional market penetration this cycle
2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Capital generation for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust book value per share growth of 28.2%

At $75.57 per share, W. R. Berkley trades at 2.9x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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