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 where Wall Street’s excitement appears well-founded and one where analysts may be overlooking some important risks.
One Stock to Sell:
Lucid (LCID)
Consensus Price Target: $8.40 (27.8% implied return)
Founded by a former Tesla Vice President, Lucid Group (NASDAQ: LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities.
Why Do We Think Twice About LCID?
- Negative 136% gross margin means it loses money on every sale and must pivot or scale quickly to survive
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Lucid is trading at $6.57 per share, or 0.9x forward price-to-sales. Check out our free in-depth research report to learn more about why LCID doesn’t pass our bar.
Two Stocks to Watch:
Leidos (LDOS)
Consensus Price Target: $183.27 (78% implied return)
Formed through the split of IT services company SAIC, Leidos (NYSE: LDOS) offers technology and engineering solutions such as military training systems for the defense, civil, and health markets.
Why Are We Fans of LDOS?
- Average backlog growth of 17.6% over the past two years shows it has a steady sales pipeline that will drive future orders
- Share buybacks catapulted its annual earnings per share growth to 22.4%, which outperformed its revenue gains over the last two years
- Free cash flow margin grew by 5.1 percentage points over the last five years, giving the company more chips to play with
At $102.94 per share, Leidos trades at 8.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Riley Exploration Permian (REPX)
Consensus Price Target: $48 (45.5% implied return)
Operating in counties where legacy oil fields have been producing since the early 1900s, Riley Exploration Permian (NYSE: REPX) drills for and produces oil and natural gas from horizontal wells in the Permian Basin of West Texas and New Mexico.
Why Will REPX Beat the Market?
- Market share has increased this cycle as its 30.8% annual revenue growth over the last eight years was exceptional
- Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 76.6%
- Robust free cash flow margin of 17.3% gives it many options for capital deployment
Riley Exploration Permian’s stock price of $32.98 implies a valuation ratio of 4.6x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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.
