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. Keeping that in mind, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two facing legitimate challenges.\n\nTwo Stocks to Sell:\n\nThe ONE Group (STKS)\nConsensus Price Target: $5.50 (16% implied return)\nDoubling as a hospitality services provider for hotels and resorts, The One Group Hospitality (NASDAQ: STKS) is an upscale restaurant company that operates STK Steakhouse and Kona Grill.\n\nWhy Do We Pass on STKS?\n- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants.\n- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term.\n- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings.\n\nAt $4.74 per share, The ONE Group trades at 1.4x forward EV-to-EBITDA.\n\nHilton (HLT)\nConsensus Price Target: $250.20 (-6.4% implied return)\nFounded in 1919, Hilton Worldwide (NYSE: HLT) is a global hospitality company with a portfolio of hotel brands.\n\nWhy Are We Cautious About HLT?\n- Annual sales growth of 9.9% over the last two years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand.\n- Weak revenue per room over the past two years indicates challenges in maintaining pricing power and occupancy rates.\n- Estimated sales growth of 6.8% for the next 12 months implies demand will slow from its two-year trend.\n\nHilton’s stock price of $267.20 implies a valuation ratio of 33.2x forward P/E.\n\nOne Stock to Buy:\n\nO'Reilly (ORLY)\nConsensus Price Target: $97.25 (6% implied return)\nServing both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ: ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.\n\nWhy Should You Buy ORLY?\n- Comparable store sales rose by 4.5% on average over the past two years, demonstrating its ability to drive increased spending at existing locations.\n- Unique assortment of products and pricing power result in a best-in-class gross margin of 51.3%.\n- Strong free cash flow margin of 12% enables it to reinvest or return capital consistently.\n\nO'Reilly is trading at $91.75 per share, or 30.5x forward P/E.\n\nStocks We Like Even More\nMarket indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a \"fearful\" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% five-year return).

1 Unpopular Stock that Deserves Some Love and 2 to Be Wary Of

The article analyzes three stocks: The ONE Group (STKS), Hilton (HLT), and O'Reilly (ORLY). It highlights reasons to avoid STKS and HLT due to weak financial performance and market challenges, while recommending ORLY for its strong fundamentals and growth potential. The analysis also notes broader market concerns tied to trade policies and political uncertainty.