1 of Wall Street's Favorite Stock Worth Your Attention and 2 to Steer Clear Of
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it's worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here is one stock where Wall Street's excitement appears well-founded and two where its enthusiasm might be excessive.
Consensus Price Target: $21.31 (29.3% implied return)
Established in 1982, PENN Entertainment (NASDAQ:PENN) is a diversified American operator of casinos, sports betting, and entertainment venues.
Why Should You Sell PENN?
1% annual revenue growth over the last two years was slower than its consumer discretionary peers
Earnings per share fell by 30.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Eroding returns on capital from an already low base indicate that management's recent investments are destroying value
PENN Entertainment's stock price of $16.48 implies a valuation ratio of 1.6x forward EV-to-EBITDA. If you're considering PENN for your portfolio, see our FREE research report to learn more.
Consensus Price Target: $204.33 (15.8% implied return)
Based in Pittsburgh, WESCO (NYSE:WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.
Why Are We Cautious About WCC?
Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
Earnings per share have dipped by 14.3% annually over the past two years, which is concerning because stock prices follow EPS over the long term
Free cash flow margin shrank by 3.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
WESCO is trading at $176.51 per share, or 12.4x forward P/E. Read our free research report to see why you should think twice about including WCC in your portfolio, it's free.
Consensus Price Target: $39 (16.8% implied return)
Founded in 1987, American Superconductor (NASDAQ:AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.
Why Is AMSC a Good Business?
Annual revenue growth of 45% over the past two years was outstanding, reflecting market share gains this cycle
Free cash flow turned positive over the last five years, showing the company has crossed a key inflection point
Rising returns on capital show the company is starting to reap the benefits of its past investments
At $33.39 per share, American Superconductor trades at 62.4x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it's free.
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
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