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. Keeping that in mind, here is one stock where Wall Street’s excitement appears well-founded and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Rush Enterprises (RUSHA)
Consensus Price Target: $60 (27.6% implied return)
Headquartered in Texas, Rush Enterprises (NASDAQ: RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.
Why Do We Think RUSHA Will Underperform?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Forecasted revenue decline of 3.6% for the upcoming 12 months implies demand will fall off a cliff
- Sales over the last two years were less profitable as its earnings per share fell by 12% annually while its revenue was flat
Rush Enterprises is trading at $47.02 per share, or 14.6x forward P/E. To fully understand why you should be careful with RUSHA, check out our full research report (it’s free for active Edge members).
Wintrust Financial (WTFC)
Consensus Price Target: $157.07 (20.8% implied return)
Founded in 1991 as a community-focused alternative to big banks in the Chicago area, Wintrust Financial (NASDAQGS:WTFC) operates community banks in the Chicago area and provides specialty finance services including insurance premium financing and wealth management.
Why Are We Cautious About WTFC?
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 17 basis points (100 basis points = 1 percentage point)
- High debt servicing costs relative to its earnings leave little margin for error in meeting its financial obligations
At $130 per share, Wintrust Financial trades at 1.3x forward P/B. Read our free research report to see why you should think twice about including WTFC in your portfolio.
One Stock to Buy:
Microsoft (MSFT)
Consensus Price Target: $626.65 (23.8% implied return)
Originally named "Micro-soft" for microcomputer software when founded in 1975, Microsoft (NASDAQ: MSFT) is a global technology company that develops software, cloud services, devices, and AI solutions for consumers, businesses, and organizations worldwide.
Why Are We Backing MSFT?
- Microsoft is one of the great brands not just in tech but all of business. It produces mission-critical software and bundles it together, resulting in cream-of-the-crop gross margins.
- The company's elite unit economics lead to robust profit margins that improve over time. This speaks to the scale advantages and operating efficiency across its diverse portfolio, which spans everything from Office and Azure to Minecraft.
- Microsoft has a virtuous cycle of returns. Its dominant market position enables it to generate strong free cash flow, and it reinvests these funds into promising ventures that further strengthen its competitive moat.
Microsoft’s stock price of $506.20 implies a valuation ratio of 30.2x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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