2 of Wall Street’s Favorite Stocks for Long-Term Investors and 1 We Question
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 consensus estimates seem disconnected from reality.
One Stock to Sell:
Walker & Dunlop (WD)
Consensus Price Target: $67.33 (43.8% implied return)
Originating as a small mortgage banking firm during the Great Depression in 1937, Walker & Dunlop (NYSE:WD) provides commercial real estate financing, property sales, appraisal, and investment management services with a focus on multifamily properties.
Why Do We Avoid WD?
- Loans are facing significant end-market challenges during this cycle as net interest income has declined by 37.8% annually over the last five years
- Earnings per share fell by 14.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 7.5% annually over the last five years
Walker & Dunlop’s stock price of $46.82 implies a valuation ratio of 0.9x forward P/B. Check out our free in-depth research report to learn more about why WD doesn’t pass our bar.
Two Stocks to Buy:
Shopify (SHOP)
Consensus Price Target: $148.39 (32.6% implied return)
Starting with just three people selling snowboards online in 2004, Shopify (NASDAQ:SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.
Why Will SHOP Beat the Market?
- Billings growth has averaged 32.3% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Notable projected revenue growth of 25.9% for the next 12 months hints at market share gains
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Shopify is trading at $111.94 per share, or 9.9x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
First Solar (FSLR)
Consensus Price Target: $256.36 (24.5% implied return)
Headquartered in Arizona, First Solar (NASDAQ:FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.
Why Are We Bullish on FSLR?
- Impressive 23.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Free cash flow margin is now positive, indicating the company has passed a significant test
- Returns on capital are climbing as management makes more lucrative bets
At $205.95 per share, First Solar trades at 10.8x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.