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1 of Wall Street’s Favorite Stock Worth Investigating and 2 to Turn Down

By: StockStory

June 16, 2025 at 00:38 AM EDT

SHLS 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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.

Two IndustrialsStocks to Sell:

Shoals (SHLS)

Consensus Price Target: $6.31 (21.8% implied return)

Started in Huntsville, Alabama, Shoals (NASDAQ: SHLS) designs and manufactures products that make solar energy systems work more efficiently.

Why Does SHLS Worry Us?

Average backlog growth of 2.7% over the past two years was mediocre and suggests fewer customers signed long-term contracts
Earnings per share have contracted by 2% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Shoals is trading at $5.18 per share, or 12x forward P/E. To fully understand why you should be careful with SHLS, check out our full research report (it’s free).

Covenant Logistics (CVLG)

Consensus Price Target: $32 (40.6% implied return)

Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ: CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.

Why Should You Dump CVLG?

Customers postponed purchases of its products and services this cycle as its revenue declined by 3% annually over the last two years
Earnings per share have dipped by 17% annually over the past two years, which is concerning because stock prices follow EPS over the long term
Free cash flow margin dropped by 25 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Covenant Logistics’s stock price of $22.76 implies a valuation ratio of 6.4x forward EV-to-EBITDA. If you’re considering CVLG for your portfolio, see our FREE research report to learn more.

One Industrials Stock to Watch:

SmartRent (SMRT)

Consensus Price Target: $1.65 (89.6% implied return)

Founded by an employee at a real estate rental company, SmartRent (NYSE: SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.

Why Are We Fans of SMRT?

Ability to secure long-term commitments with customers is evident in its 28.5% average ARR growth over the past two years
Earnings growth has trumped its peers over the last two years as its EPS has compounded at 43% annually

At $0.87 per share, SmartRent trades at 1.1x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even 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 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 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

Symbol	Price	Change (%)
AMZN	222.86	-7.44 (-3.23%)
AAPL	271.40	+1.70 (0.63%)
AMD	254.84	-9.49 (-3.59%)
BAC	53.03	+0.45 (0.86%)
GOOG	281.90	+6.73 (2.45%)
META	666.47	-85.20 (-11.33%)
MSFT	525.76	-15.79 (-2.92%)
NVDA	202.89	-4.15 (-2.00%)
ORCL	256.89	-18.41 (-6.69%)
TSLA	440.10	-21.41 (-4.64%)

Symbol

Price

Change (%)

AMZN

222.86

-7.44 (-3.23%)

AAPL

271.40

+1.70 (0.63%)

AMD

254.84

-9.49 (-3.59%)

BAC

53.03

+0.45 (0.86%)

GOOG

281.90

+6.73 (2.45%)

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