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2 of Wall Street’s Favorite Stocks to Own for Decades and 1 We Ignore
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.
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 are two stocks where Wall Street’s excitement appears well-founded and one where its enthusiasm might be excessive.
One Stock to Sell:
Insteel (IIIN)
Consensus Price Target: $39 (28.4% implied return)
Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE:IIIN) provides steel wire reinforcing products for concrete.
Why Does IIIN Give Us Pause?
- 4.9% annual revenue growth over the last five years was slower than its industrials peers
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 6.6% annually
- Eroding returns on capital suggest its historical profit centers are aging
Insteel is trading at $30.39 per share, or 14.9x forward P/E. Read our free research report to see why you should think twice about including IIIN in your portfolio.
Two Stocks to Buy:
Nextpower (NXT)
Consensus Price Target: $141.52 (60.8% implied return)
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextpower (NASDAQ:NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Will NXT Outperform?
- Annual revenue growth of 15.1% over the past two years was outstanding, reflecting market share gains this cycle
- Free cash flow margin increased by 23.4 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are climbing as management makes more lucrative bets
At $88.00 per share, Nextpower trades at 19.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Viper Energy (VNOM)
Consensus Price Target: $55.84 (24% implied return)
Operating a business model that requires no drilling rigs or production equipment of its own, Viper Energy (NASDAQ:VNOM) owns mineral and royalty interests in oil and gas properties, collecting revenue when operators extract resources from land.
Why Are We Bullish on VNOM?
- Annual revenue growth of 40.1% over the last ten years was superb and indicates its market share increased during this cycle
- Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 100%
- EBITDA margin expanded by 3.8 percentage points over the last five years as it scaled and became more efficient
Viper Energy’s stock price of $45.03 implies a valuation ratio of 17.6x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.