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. Keeping that in mind, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Ingram Micro (INGM)
Consensus Price Target: $31.42 (19.7% implied return)
Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE: INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise.
Why Is INGM Risky?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Earnings per share have contracted by 8.6% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
- Poor free cash flow margin of 0.2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $26.26 per share, Ingram Micro trades at 7.7x forward P/E. To fully understand why you should be careful with INGM, check out our full research report (it’s free).
Liberty Energy (LBRT)
Consensus Price Target: $33.92 (43.6% implied return)
Operating approximately 40 active fleets across North America's most productive shale basins, Liberty Energy (NYSE: LBRT) provides hydraulic fracturing services that help oil and gas companies extract resources from shale formations.
Why Do We Think Twice About LBRT?
- Costly operations and weak unit economics result in an inferior gross margin of 23.3% that must be offset through higher production volumes
- Low free cash flow margin of 2.3% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Liberty Energy is trading at $23.62 per share, or 89.3x forward P/E. Dive into our free research report to see why there are better opportunities than LBRT.
One Stock to Buy:
Paymentus (PAY)
Consensus Price Target: $34.29 (22.5% implied return)
Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE: PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.
What Makes PAY Stand Out?
- Annual revenue growth of 40.2% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 51% annually, topping its revenue gains
Paymentus’s stock price of $28.00 implies a valuation ratio of 31.7x forward P/E. Is now a good time to buy? Find out 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
