Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.

Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. Keeping that in mind, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two where the outlook is warranted.

Two Stocks to Sell:

Thermon (THR)

Consensus Price Target: $34.50 (-2.8% implied return)

Creating the first packaged tracing systems, Thermon (NYSE: THR) is a leading provider of engineered industrial process heating solutions for process industries.

Why Are We Cautious About THR?

1. Sales trends were unexciting over the last two years as its 3.5% annual growth was below the typical industrials company
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.1%
3. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.6% annually

Thermon’s stock price of $35.51 implies a valuation ratio of 18.7x forward EV-to-EBITDA. If you’re considering THR for your portfolio, see our FREE research report to learn more.

Cathay General Bancorp (CATY)

Consensus Price Target: $51.20 (10.1% implied return)

Founded in 1962 with its first branch in Los Angeles' Chinatown, Cathay General Bancorp (NASDAQ: CATY) operates Cathay Bank, providing commercial banking services to businesses and individuals with a strong presence in Asian-American communities.

Why Is CATY Not Exciting?

1. Sales tumbled by 1.8% annually over the last two years, showing market trends are working against its favor during this cycle
2. Net interest income trends were unexciting over the last five years as its 5.4% annual growth was below the typical banking firm
3. Net interest margin shrank by 24.3 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive

At $46.52 per share, Cathay General Bancorp trades at 1.1x forward P/B. To fully understand why you should be careful with CATY, check out our full research report (it’s free for active Edge members).

One Stock to Buy:

Eli Lilly (LLY)

Consensus Price Target: $973.85 (-4.6% implied return)

Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.

Why Do We Love LLY?

1. Impressive 36.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Adjusted operating margin improvement of 20.8 percentage points over the last two years demonstrates its ability to scale efficiently
3. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

Eli Lilly is trading at $1,020 per share, or 32.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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 (+1,545% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.