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1 of Wall Street’s Favorite Stock to Research Further and 2 We Turn Down

BAND 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. That said, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

Bandwidth (BAND)

Consensus Price Target: $23.67 (57.3% implied return)

Powering communications for tech giants like Microsoft, Google, and Zoom, Bandwidth (NASDAQ: BAND) provides cloud-based communications software and APIs that enable businesses to embed voice, messaging, and emergency services into their applications and platforms.

Why Are We Wary of BAND?

  1. Revenue increased by 12.9% annually over the last two years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
  2. Bad unit economics and steep infrastructure costs are reflected in its gross margin of 38.8%, one of the worst among software companies
  3. Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient

Bandwidth’s stock price of $15.05 implies a valuation ratio of 0.5x forward price-to-sales. Read our free research report to see why you should think twice about including BAND in your portfolio.

Honeywell (HON)

Consensus Price Target: $237.40 (21.2% implied return)

Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ: HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.

Why Does HON Give Us Pause?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Forecasted revenue decline of 3.3% for the upcoming 12 months implies demand will fall off a cliff
  3. Waning returns on capital imply its previous profit engines are losing steam

Honeywell is trading at $195.92 per share, or 19.4x forward P/E. Dive into our free research report to see why there are better opportunities than HON.

One Stock to Watch:

Montrose (MEG)

Consensus Price Target: $33.33 (27.9% implied return)

Founded to protect a tree-lined two-lane road, Montrose (NYSE: MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.

Why Are We Positive On MEG?

  1. Market share has increased this cycle as its 17.6% annual revenue growth over the last two years was exceptional
  2. Earnings per share have massively outperformed its peers over the last two years, increasing by 109% annually
  3. Free cash flow margin expanded by 6.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

At $26.07 per share, Montrose trades at 20.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.

Stocks We Like Even More

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 5 Strong Momentum 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-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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