2 of Wall Street's Favorite Stocks Worth Investigating and 1 to Brush Off

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 analysts may be overlooking some important risks.

One Stock to Sell:

Redwire (RDW)

Consensus Price Target: $26 (128% implied return)

Based in Jacksonville, Florida, Redwire (NYSE:RDW) is a provider of systems and components used in space infrastructure.

Why Does RDW Give Us Pause?

1. Issuance of new shares over the last four years caused its earnings per share to fall by 57% annually while its revenue grew
2. Cash-burning history makes us doubt the long-term viability of its business model
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Redwire’s stock price of $11.30 implies a valuation ratio of 15.7x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than RDW.

Two Stocks to Watch:

Universal Display (OLED)

Consensus Price Target: $205.32 (39.8% 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 Are We Positive On OLED?

1. Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 75.1%
2. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 37.3%
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

At $126.41 per share, Universal Display trades at 24.4x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.

Astrana Health (ASTH)

Consensus Price Target: $60.70 (65% implied return)

Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ:ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.

Why Are We Fans of ASTH?

1. Annual revenue growth of 33.3% over the past two years was outstanding, reflecting market share gains this cycle
2. Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
3. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 18.7% annually

Astrana Health is trading at $30.60 per share, or 7x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.