
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. Keeping that in mind, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Shoals (SHLS)
Consensus Price Target: $10.03 (33.7% implied return)
Started in Huntsville, Alabama, Shoals (NASDAQ: SHLS) designs and manufactures products that make solar energy systems work more efficiently.
Why Does SHLS Fall Short?
- Sales tumbled by 2.1% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $7.50 per share, Shoals trades at 15.2x forward P/E. To fully understand why you should be careful with SHLS, check out our full research report (it’s free for active Edge members).
Oracle (ORCL)
Consensus Price Target: $342.72 (65.3% implied return)
Starting as a database company in 1977 and now powering mission-critical systems across the globe, Oracle (NYSE: ORCL) provides enterprise software and hardware products and services that help businesses manage their information technology needs.
Why Is ORCL Risky?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 9.2% underwhelmed
- Cash-burning history makes us doubt the long-term viability of its business model
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Oracle’s stock price of $207.24 implies a valuation ratio of 8.7x forward price-to-sales. Check out our free in-depth research report to learn more about why ORCL doesn’t pass our bar.
One Stock to Buy:
Customers Bancorp (CUBI)
Consensus Price Target: $84.75 (32.5% implied return)
Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE: CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.
Why Should You Buy CUBI?
- Market share has increased this cycle as its 14.8% annual net interest income growth over the last five years was exceptional
- Productivity and efficiency ratio profits are expected to increase next year as some fixed cost leverage kicks in
- Additional sales over the last five years increased its profitability as the 19.5% annual growth in its earnings per share outpaced its revenue
Customers Bancorp is trading at $63.94 per share, or 1.1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
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