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.
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. That said, here are two stocks where you should be greedy instead of fearful and one where the skepticism is well-placed.
One Stock to Sell:
Kulicke and Soffa (KLIC)
Consensus Price Target: $66.67 (-7.1% implied return)
Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices
Why Is KLIC Not Exciting?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.6% annually over the last five years
- Overall productivity fell over the last five years as its plummeting sales were accompanied by a decline in its operating margin
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 29.8% annually, worse than its revenue
Kulicke and Soffa’s stock price of $71.82 implies a valuation ratio of 24.3x forward P/E. If you’re considering KLIC for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Quanta (PWR)
Consensus Price Target: $580.13 (1.4% implied return)
A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Are We Backing PWR?
- Backlog has averaged 18% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Notable projected revenue growth of 17.6% for the next 12 months hints at market share gains
- Earnings per share grew by 22.4% annually over the last two years and trumped its peers
Quanta is trading at $572.42 per share, or 43.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
1st Source (SRCE)
Consensus Price Target: $76.33 (11.7% implied return)
Tracing its roots back to 1863 during the Civil War era, 1st Source Corporation (NASDAQ: SRCE) is a regional bank holding company that provides commercial, consumer, specialty finance, and wealth management services across Indiana, Michigan, and Florida.
Why Are We Positive On SRCE?
- Net interest margin grew by 55.7 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more chips to play with
- Share buybacks propelled its annual earnings per share growth to 15.2%, which outperformed its revenue gains over the last five years
- Impressive 9.1% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
At $68.37 per share, 1st Source trades at 1.2x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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 (+1,326% 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.
