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 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:
APi (APG)
Consensus Price Target: $41.30 (19.6% implied return)
Started in 1926 as an insulation contractor, APi (NYSE: APG) provides life safety solutions and specialty services for buildings and infrastructure.
Why Are We Cautious About APG?
- 4.2% annual revenue growth over the last two years was slower than its industrials peers
- 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
- Underwhelming 3.3% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $34.52 per share, APi trades at 22.5x forward P/E. Dive into our free research report to see why there are better opportunities than APG.
Two Stocks to Buy:
Remitly (RELY)
Consensus Price Target: $24.83 (43.7% implied return)
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ: RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Is RELY a Top Pick?
- Active Customers have grown by 34.4% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 76.4% annually, topping its revenue gains
- Free cash flow margin grew by 33.7 percentage points over the last few years, giving the company more chips to play with
Remitly is trading at $17.28 per share, or 15.2x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
ServisFirst Bancshares (SFBS)
Consensus Price Target: $86.67 (22.4% implied return)
Founded in 2005 with a focus on serving underserved mid-sized businesses, ServisFirst Bancshares (NYSE: SFBS) is a bank holding company that provides commercial banking services to businesses and professionals through its subsidiary ServisFirst Bank.
Why Will SFBS Outperform?
- 9.6% annual net interest income growth over the last five years surpassed the sector average as its loans resonated with borrowers
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 6.8% annually
- Annual tangible book value per share growth of 13.3% over the past five years was outstanding, reflecting strong capital accumulation this cycle
ServisFirst Bancshares’s stock price of $70.79 implies a valuation ratio of 2.1x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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-micro-cap company Kadant (+351% 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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