Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. Keeping that in mind, here is one stock poised to prove Wall Street wrong and two facing legitimate challenges.
Two Stocks to Sell:
SolarEdge (SEDG)
Consensus Price Target: $40.74 (24% implied return)
Established in 2006, SolarEdge (NASDAQ: SEDG) creates advanced systems to improve the efficiency of solar panels.
Why Is SEDG Risky?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.4% annually over the last five years
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
SolarEdge’s stock price of $32.85 implies a valuation ratio of 69.4x forward P/E. Dive into our free research report to see why there are better opportunities than SEDG.
MarketAxess (MKTX)
Consensus Price Target: $152.22 (-6.1% implied return)
Pioneering the shift from phone-based to electronic bond trading since 2000, MarketAxess (NASDAQ:MKTX) operates electronic trading platforms that enable institutional investors and broker-dealers to efficiently trade fixed-income securities like corporate and government bonds.
Why Are We Wary of MKTX?
- Muted 4% annual revenue growth over the last five years shows its demand lagged behind its financials peers
- Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable
At $162.13 per share, MarketAxess trades at 20.3x forward P/E. Check out our free in-depth research report to learn more about why MKTX doesn’t pass our bar.
One Stock to Watch:
Old National Bank (ONB)
Consensus Price Target: $29.82 (11.8% implied return)
Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ:ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.
Why Are We Fans of ONB?
- Market share has increased this cycle as its 24.8% annual revenue growth over the last two years was exceptional
- Annual net interest income growth of 30.7% over the past five years was outstanding, reflecting market share gains this cycle
- Anticipated efficiency ratio improvement of -5.4 percentage points over the next year signals it will gain leverage on its fixed costs and become more productive
Old National Bank is trading at $26.67 per share, or 1.2x forward P/B. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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.