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2 of Wall Street’s Favorite Stocks on Our Watchlist and 1 Facing Headwinds

CMRC 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 likely to meet or exceed Wall Street’s lofty expectations and one where analysts may be overlooking some important risks.

One Stock to Sell:

Commerce (CMRC)

Consensus Price Target: $7.14 (57.2% implied return)

As a founding member of the MACH Alliance advocating for modern tech standards, Commerce (NASDAQ: CMRC) provides a SaaS platform that enables businesses to build and manage online stores, connect with marketplaces, and integrate with point-of-sale systems.

Why Are We Out on CMRC?

  1. Offerings struggled to generate meaningful interest as its average billings growth of 2.4% over the last year did not impress
  2. Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its two-year trend
  3. Low free cash flow margin of 8.3% for the last year gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Commerce’s stock price of $4.55 implies a valuation ratio of 1x forward price-to-sales. Read our free research report to see why you should think twice about including CMRC in your portfolio.

Two Stocks to Watch:

FTAI Aviation (FTAI)

Consensus Price Target: $227.10 (31.1% implied return)

With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.

Why Do We Love FTAI?

  1. Market share has increased this cycle as its 43.9% annual revenue growth over the last two years was exceptional
  2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 82.4% annually, topping its revenue gains
  3. Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability

At $173.20 per share, FTAI Aviation trades at 28.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Charles Schwab (SCHW)

Consensus Price Target: $111.61 (20.5% implied return)

Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE: SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.

Why Is SCHW Interesting?

  1. Annual revenue growth of 17.8% over the last five years was superb and indicates its market share increased during this cycle
  2. Earnings growth was above the peer group average over the last five years as its EPS compounded at 14.5% annually
  3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

Charles Schwab is trading at $92.63 per share, or 17x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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 (+1,326% between June 2020 and June 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

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.

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