1 of Wall Street’s Favorite Stock with Impressive Fundamentals and 2 We Ignore

OKTA Cover Image

The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.

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 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:

Okta (OKTA)

Consensus Price Target: $120.84 (35.3% implied return)

Named after the meteorological measurement for cloud cover, Okta (NASDAQ: OKTA) provides cloud-based identity management solutions that help organizations securely connect their employees, partners, and customers to the right applications and services.

Why Does OKTA Give Us Pause?

  1. Customers had second thoughts about committing to its platform over the last year as its average billings growth of 10.9% underwhelmed
  2. Estimated sales growth of 8.7% for the next 12 months implies demand will slow from its two-year trend
  3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 2.9 percentage points

Okta is trading at $89.34 per share, or 5.4x forward price-to-sales. To fully understand why you should be careful with OKTA, check out our full research report (it’s free for active Edge members).

Organon (OGN)

Consensus Price Target: $10.83 (62.6% implied return)

Spun off from Merck in 2021 to create a company dedicated to addressing unmet needs in women's health, Organon (NYSE: OGN) is a global healthcare company focused on improving women's health through prescription therapies, medical devices, biosimilars, and established medicines.

Why Does OGN Fall Short?

  1. Annual sales declines of 2.6% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Sales were less profitable over the last five years as its earnings per share fell by 18.5% annually, worse than its revenue declines
  3. 25.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $6.66 per share, Organon trades at 1.8x forward P/E. Check out our free in-depth research report to learn more about why OGN doesn’t pass our bar.

One Stock to Buy:

SouthState (SSB)

Consensus Price Target: $115.42 (28.6% implied return)

With roots dating back to the Great Depression era of 1933, SouthState (NYSE: SSB) is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.

Why Are We Bullish on SSB?

  1. Impressive 25.2% annual net interest income growth over the last five years indicates it’s winning market share this cycle
  2. Efficiency ratio improvement of 12.4 percentage points over the last five years demonstrates its ability to scale effectively
  3. Earnings per share have massively outperformed its peers over the last two years, increasing by 12.5% annually

SouthState’s stock price of $89.72 implies a valuation ratio of 1x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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-micro-cap company Tecnoglass (+1,754% 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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