When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. Keeping that in mind, here are two stocks poised to prove Wall Street wrong and one facing legitimate challenges.
One Stock to Sell:
Roku (ROKU)
Consensus Price Target: $110.67 (4.9% implied return)
With a name meaning six in Japanese because it was the founder's sixth company that he started, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.
Why Are We Hesitant About ROKU?
- Decision to emphasize platform growth over monetization has contributed to sluggish trends in its average revenue per user
- Gross margin of 44% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Excessive marketing spend signals little organic demand and traction for its platform
Roku is trading at $105.46 per share, or 31.4x forward EV/EBITDA. If you’re considering ROKU for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
MACOM (MTSI)
Consensus Price Target: $183 (6% implied return)
Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
Why Are We Fans of MTSI?
- Market share has increased this cycle as its 22.1% annual revenue growth over the last two years was exceptional
- Offerings are mission-critical for businesses and lead to a top-tier gross margin of 54.4%
- Earnings per share have massively outperformed its peers over the last five years, increasing by 29.1% annually
MACOM’s stock price of $172.64 implies a valuation ratio of 40.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Northwest Pipe (NWPX)
Consensus Price Target: $64 (7.9% implied return)
Playing a large role in the Integrated Pipeline (IPL) project in Texas to deliver ~350 million gallons of water per day, Northwest Pipe (NASDAQ:NWPX) is a manufacturer of pipeline systems for water infrastructure.
Why Do We Like NWPX?
- Impressive 12.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin jumped by 13.7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $59.31 per share, Northwest Pipe trades at 15.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 244% over the last five years (as of June 30, 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-micro-cap company Kadant (+351% 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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