2 of Wall Street’s Favorite Stocks Worth Your Attention and 1 Facing Headwinds

PENN Cover Image

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.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where analysts may be overlooking some important risks.

One Stock to Sell:

PENN Entertainment (PENN)

Consensus Price Target: $22.19 (33.5% 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. Sales trends were unexciting over the last two years as its 1.4% annual growth was below the typical consumer discretionary company
  2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

PENN Entertainment’s stock price of $16.63 implies a valuation ratio of 36x forward P/E. If you’re considering PENN for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Cigna (CI)

Consensus Price Target: $366.50 (23.6% implied return)

With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE: CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans.

Why Do We Like CI?

  1. Annual revenue growth of 18.6% over the last two years was superb and indicates its market share increased during this cycle
  2. Dominant market position is represented by its $262 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
  3. Earnings growth was above the peer group average over the last five years as its EPS compounded at 7.7% annually

At $296.55 per share, Cigna trades at 9.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

CBIZ (CBZ)

Consensus Price Target: $95 (85.4% implied return)

With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE: CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations.

Why Are We Fans of CBZ?

  1. Market share has increased this cycle as its 26.6% annual revenue growth over the last two years was exceptional
  2. Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
  3. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 29.6% annually

CBIZ is trading at $51.24 per share, or 14.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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