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1 of Wall Street’s Favorite Stock with Solid Fundamentals and 2 We Question

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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 likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.

Two Stocks to Sell:

Best Buy (BBY)

Consensus Price Target: $80.81 (19.5% implied return)

With humble beginnings as a stereo equipment seller, Best Buy (NYSE: BBY) now sells a broad selection of consumer electronics, appliances, and home office products.

Why Do We Steer Clear of BBY?

  1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  2. Commoditized inventory, bad unit economics, and high competition are reflected in its low gross margin of 22.5%
  3. Poor expense management has led to an operating margin of 3% that is below the industry average

Best Buy’s stock price of $67.63 implies a valuation ratio of 10.4x forward P/E. Check out our free in-depth research report to learn more about why BBY doesn’t pass our bar.

Stratasys (SSYS)

Consensus Price Target: $13.17 (28.1% implied return)

Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ: SSYS) offers 3D printers and related materials, software, and services to many industries.

Why Do We Think SSYS Will Underperform?

  1. Sales tumbled by 5.6% annually over the last two years, showing market trends are working against its favor during this cycle
  2. Historical operating margin losses point to an inefficient cost structure
  3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.1 percentage points

Stratasys is trading at $10.28 per share, or 54.3x forward P/E. Dive into our free research report to see why there are better opportunities than SSYS.

One Stock to Watch:

Universal Display (OLED)

Consensus Price Target: $163.67 (44.7% implied return)

Serving major consumer electronics manufacturers, Universal Display (NASDAQ: OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.

Why Do We Like OLED?

  1. Solid 10.5% annual revenue growth over the last five years indicates its offering’s solve complex business issues
  2. Superior product capabilities and pricing power result in a best-in-class gross margin of 75.3%
  3. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 37.8%

At $113.09 per share, Universal Display trades at 22.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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