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 its enthusiasm might be excessive.
One Stock to Sell:
Photronics (PLAB)
Consensus Price Target: $33 (41.3% implied return)
Sporting a global footprint of facilities, Photronics (NASDAQ: PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.
Why Does PLAB Give Us Pause?
- Sales are projected to be flat over the next 12 months and imply weak demand
- Gross margin of 36.2% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 13% for the last two years
Photronics is trading at $23.35 per share, or 12.3x forward P/E. To fully understand why you should be careful with PLAB, check out our full research report (it’s free for active Edge members).
Two Stocks to Watch:
HubSpot (HUBS)
Consensus Price Target: $689.39 (53.6% implied return)
Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE: HUBS) provides an integrated platform that helps businesses attract, engage, and manage customer relationships through marketing, sales, service, and content management tools.
Why Are We Positive On HUBS?
- Billings growth has averaged 21.3% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Projected revenue growth of 16.8% for the next 12 months suggests its momentum from the last two years will persist
- Superior software functionality and low servicing costs are reflected in its stellar gross margin of 84.6%
HubSpot’s stock price of $448.71 implies a valuation ratio of 7.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
BILL (BILL)
Consensus Price Target: $60.50 (21% implied return)
Transforming the messy back-office financial operations that plague small business owners, BILL (NYSE: BILL) provides a cloud-based platform that automates accounts payable, accounts receivable, and expense management for small and midsize businesses.
Why Do We Like BILL?
- Impressive 56.1% annual revenue growth over the last five years indicates it’s winning market share
- Prominent and differentiated software culminates in a stellar gross margin of 84.3%
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
At $50 per share, BILL trades at 3.2x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 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-micro-cap company Tecnoglass (+1,754% 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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