1 Unpopular Stock That Deserves Some Love and 2 That Underwhelm

When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.

Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. Keeping that in mind, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two where the outlook is warranted.

Two Stocks to Sell:

SolarEdge (SEDG)

Consensus Price Target: $32.65 (4.4% implied return)

Established in 2006, SolarEdge (NASDAQ: SEDG) creates advanced systems to improve the efficiency of solar panels.

Why Do We Avoid SEDG?

1. Sluggish trends in its megawatts shipped suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
3. Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes

SolarEdge’s stock price of $31.29 implies a valuation ratio of 1.4x forward price-to-sales. Check out our free in-depth research report to learn more about why SEDG doesn’t pass our bar.

Hewlett Packard Enterprise (HPE)

Consensus Price Target: $26.28 (9.5% implied return)

Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE:HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.

Why Are We Hesitant About HPE?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4.9% over the last five years was below our standards for the business services sector
2. Incremental sales over the last two years were much less profitable as its earnings per share fell by 5.5% annually while its revenue grew
3. Free cash flow margin dropped by 10.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Hewlett Packard Enterprise is trading at $23.99 per share, or 10.2x forward P/E. To fully understand why you should be careful with HPE, check out our full research report (it’s free for active Edge members).

One Stock to Buy:

American Express (AXP)

Consensus Price Target: $364.10 (-3.8% implied return)

Recognizable by its iconic green logo and the slogan "Don't leave home without it," American Express (NYSE:AXP) is a global payments company that issues credit and charge cards, processes merchant transactions, and offers travel and lifestyle benefits to consumers and businesses.

Why Is AXP a Top Pick?

1. Offerings and unique value proposition resonate with customers, as seen in its above-market 12.1% annual sales growth over the last five years
2. Share buybacks catapulted its annual earnings per share growth to 29.9%, which outperformed its revenue gains over the last five years
3. Industry-leading 32.9% return on equity demonstrates management’s skill in finding high-return investments

At $378.50 per share, American Express trades at 22.4x forward P/E. Is now the time to initiate a position? 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 6 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-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.