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2 of Wall Street’s Favorite Stocks with Impressive Fundamentals 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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here are two stocks likely to meet or exceed Wall Street’s lofty expectations and one where analysts may be overlooking some important risks.
One Stock to Sell:
Genesis Energy (GEL)
Consensus Price Target: $18 (26.6% implied return)
Operating a 64% stake in the Poseidon Pipeline, one of the Gulf of Mexico's largest crude oil pipelines, Genesis Energy (NYSE:GEL) provides midstream services like pipeline transportation, storage, and processing for crude oil and natural gas producers and refiners.
Why Do We Think GEL Will Underperform?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Gross margin of 25.8% reflects its high production costs and unfavorable asset base
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Genesis Energy’s stock price of $14.22 implies a valuation ratio of 8.4x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than GEL.
Two Stocks to Buy:
Pinterest (PINS)
Consensus Price Target: $29.05 (32% implied return)
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
What Makes PINS Stand Out?
- Monthly Active Users have increased by an average of 11% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 36.4% over the last three years outstripped its revenue performance
- Robust free cash flow margin of 27.5% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety
Pinterest is trading at $22.02 per share, or 16.5x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
BGC (BGC)
Consensus Price Target: $16 (38.3% implied return)
Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group (NASDAQ:BGC) operates a global brokerage and financial technology platform that facilitates trading across fixed income, foreign exchange, equities, energy, and commodities markets.
Why Should You Buy BGC?
- Annual revenue growth of 24.3% over the last two years was superb and indicates its market share increased during this cycle
- Earnings per share have massively outperformed its peers over the last two years, increasing by 24.3% annually
- Acceptable return on equity suggests management generated shareholder value by investing in profitable projects
At $11.57 per share, BGC trades at 7.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.