Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.

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 Wall Street’s pessimism is creating a buying opportunity and two facing legitimate challenges.

Two Stocks to Sell:

Hertz (HTZ)

Consensus Price Target: $4.75 (-7.7% implied return)

Started with a dozen Model T Fords, Hertz (NASDAQ: HTZ) is a global car rental company providing vehicle rental services to leisure and business travelers.

Why Is HTZ Risky?

1. Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
3. High net-debt-to-EBITDA ratio of 9× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Hertz’s stock price of $5.15 implies a valuation ratio of 96.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why HTZ doesn’t pass our bar.

Johnson Controls (JCI)

Consensus Price Target: $142.11 (1.2% implied return)

Founded after patenting the electric room thermostat, Johnson Controls (NYSE: JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.

Why Is JCI Not Exciting?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Estimated sales growth of 6.6% for the next 12 months is soft and implies weaker demand
3. Underwhelming 7.4% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $140.40 per share, Johnson Controls trades at 28.9x forward P/E. Read our free research report to see why you should think twice about including JCI in your portfolio.

One Stock to Watch:

Incyte (INCY)

Consensus Price Target: $107.09 (3.7% implied return)

Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ: INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.

Why Does INCY Stand Out?

1. Annual revenue growth of 18% over the past two years was outstanding, reflecting market share gains this cycle
2. Share buybacks catapulted its annual earnings per share growth to 75.7%, which outperformed its revenue gains over the last five years
3. Free cash flow margin increased by 7.3 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Incyte is trading at $103.26 per share, or 13.8x 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).

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