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1 of Wall Street’s Favorite Stock to Research Further and 2 Facing Headwinds

TNDM 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.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here is one stock where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

Tandem Diabetes (TNDM)

Consensus Price Target: $31.10 (90.3% implied return)

With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ: TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels.

Why Are We Out on TNDM?

  1. Weak pump shipments over the past two years imply it may need to invest in improvements to get back on track
  2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 37.4% annually while its revenue grew
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $16.34 per share, Tandem Diabetes trades at 28.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TNDM.

MetLife (MET)

Consensus Price Target: $94.14 (27.2% implied return)

Founded in 1863 by a group of New York businessmen during the Civil War era, MetLife (NYSE: MET) is a global financial services company that provides insurance, annuities, employee benefits, and asset management services to individuals and businesses worldwide.

Why Should You Sell MET?

  1. Insurance products are facing significant market challenges during this cycle as net premiums earned has declined by 1.1% annually over the last two years
  2. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 4.4% annually
  3. Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 12% annually over the last five years

MetLife is trading at $74 per share, or 1.9x forward P/B. Check out our free in-depth research report to learn more about why MET doesn’t pass our bar.

One Stock to Watch:

Iridium (IRDM)

Consensus Price Target: $36.50 (46.1% implied return)

With a constellation of 66 low-earth orbit satellites providing coverage to every inch of the planet, Iridium Communications (NASDAQ: IRDM) operates a global satellite network that provides voice and data services to customers in remote areas where traditional telecommunications are unavailable.

Why Do We Like IRDM?

  1. Increase in subscribers shows customers are eagerly embracing its offerings
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 227% exceeded its revenue gains over the last two years
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Iridium’s stock price of $24.98 implies a valuation ratio of 19.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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 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 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

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