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

Two Stocks to Sell:

MDU Resources (MDU)

Consensus Price Target: $20.67 (1.5% implied return)

Founded to provide electricity to towns in Minnesota, MDU Resources (NYSE: MDU) provides products and services in the utilities and construction materials industries.

Why Do We Avoid MDU?

1. Annual sales declines of 15.3% for the past five years show its products and services struggled to connect with the market during this cycle
2. Low free cash flow margin of -0.6% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
3. High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens

MDU Resources trades at a stock price of $20.37. If you’re considering MDU for your portfolio, see our FREE research report to learn more.

SAIC (SAIC)

Consensus Price Target: $117.11 (4.6% implied return)

With over five decades of experience supporting national security missions, Science Applications International Corporation (NASDAQ: SAIC) provides technical, engineering, and enterprise IT services primarily to U.S. government agencies and military branches.

Why Do We Steer Clear of SAIC?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.1% annually over the last two years
2. Projected sales for the next 12 months are flat and suggest demand will be subdued

SAIC is trading at $111.98 per share, or 12x forward P/E. Dive into our free research report to see why there are better opportunities than SAIC.

One Stock to Buy:

Nelnet (NNI)

Consensus Price Target: $140 (-0.9% implied return)

Starting as a student loan servicer in the 1970s and evolving through the changing landscape of education finance, Nelnet (NYSE: NNI) provides student loan servicing, education technology, payment processing, and banking services while managing a portfolio of education loans.

Why Are We Backing NNI?

1. Annual revenue growth of 18% over the past two years was outstanding, reflecting market share gains this cycle
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 37.2% exceeded its revenue gains over the last two years
3. Adequate return on equity shows management makes decent investment decisions

At $141.27 per share, Nelnet trades at 16.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.