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3 of Wall Street’s Favorite Stocks with Questionable Fundamentals

BIGC Cover Image

Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.

BigCommerce (BIGC)

Consensus Price Target: $7.50 (53.4% implied return)

Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ: BIGC) provides software for businesses to easily create online stores.

Why Do We Pass on BIGC?

  1. Underwhelming ARR growth of 4% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
  2. Estimated sales growth of 3.7% for the next 12 months implies demand will slow from its three-year trend
  3. Poor expense management has led to operating margin losses

BigCommerce is trading at $4.89 per share, or 1.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BIGC.

ASGN (ASGN)

Consensus Price Target: $60.29 (20% implied return)

Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, ASGN (NYSE: ASGN) provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies.

Why Should You Sell ASGN?

  1. Annual sales declines of 6.7% for the past two years show its products and services struggled to connect with the market during this cycle
  2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 11.6% annually, worse than its revenue
  3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.1 percentage points

At $50.24 per share, ASGN trades at 9.9x forward P/E. Check out our free in-depth research report to learn more about why ASGN doesn’t pass our bar.

Dime Community Bancshares (DCOM)

Consensus Price Target: $35.70 (33.1% implied return)

With roots dating back to 1910 and a name that evokes the historic "dime savings banks" of America's past, Dime Community Bancshares (NASDAQ: DCOM) is a New York-based bank holding company that provides commercial banking and financial services to businesses and consumers throughout Greater Long Island.

Why Does DCOM Fall Short?

  1. Sales tumbled by 10.2% annually over the last two years, showing market trends are working against its favor during this cycle
  2. Net interest margin dropped by 51.7 basis points (100 basis points = 1 percentage point) over the last two years, implying the company’s spreads fell as competitors entered the market
  3. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable

Dime Community Bancshares’s stock price of $26.82 implies a valuation ratio of 0.9x forward P/B. Read our free research report to see why you should think twice about including DCOM in your portfolio.

Stocks We Like More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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-small-cap company Comfort Systems (+782% 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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