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.
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 you should be greedy instead of fearful and two where the skepticism is well-placed.
Two Stocks to Sell:
Butterfield Bank (NTB)
Consensus Price Target: $57.33 (13.3% implied return)
Founded in 1784 as one of the oldest banks in the Western Hemisphere, Butterfield Bank (NYSE: NTB) provides banking, wealth management, and trust services to individuals and businesses in select offshore financial centers including Bermuda, Cayman Islands, and the Channel Islands.
Why Are We Hesitant About NTB?
- Net interest income trends were unexciting over the last five years as its 2.8% annual growth was below the typical banking firm
- Projected net interest income is flat for the next 12 months, implying demand will slow from its five-year trend
- Weak unit economics are reflected in its net interest margin of 2.7%, one of the worst among bank companies
Butterfield Bank’s stock price of $50.63 implies a valuation ratio of 1.7x forward P/B. Read our free research report to see why you should think twice about including NTB in your portfolio.
OFG Bancorp (OFG)
Consensus Price Target: $44.40 (11% implied return)
Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE: OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands.
Why Are We Cautious About OFG?
- Annual net interest income growth of 8.3% over the last five years was below our standards for the banking sector
- Net interest income is projected to tank by 2.2% over the next 12 months as demand evaporates
- Net interest margin dropped by 77.8 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market
OFG Bancorp is trading at $40.01 per share, or 1.2x forward P/B. To fully understand why you should be careful with OFG, check out our full research report (it’s free).
One Stock to Watch:
Electronic Arts (EA)
Consensus Price Target: $205.59 (2.3% implied return)
Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ: EA) is one of the world’s largest video game publishers.
Why Is EA Interesting?
- Brand halo makes it a customer acquisition machine that onboards new users at scale without spending much money
- Healthy EBITDA margin of 35.3% shows it’s a well-run company with efficient processes
- Strong free cash flow margin of 27.6% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
At $200.98 per share, Electronic Arts trades at 16.5x forward EV/EBITDA. Is now the right time to buy? See for yourself 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
