Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like 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 where the skepticism is well-placed.
One Stock to Sell:
Rush Street Interactive (RSI)
Consensus Price Target: $30.18 (-2.1% implied return)
Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE: RSI) is an operator of digital gaming platforms.
Why Do We Avoid RSI?
- Annual revenue growth of 28.5% over the last five years was below our standards for the consumer discretionary sector
- Subpar operating margin of 6.9% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Free cash flow margin is forecasted to grow by 1.2 percentage points in the coming year, potentially giving the company more chips to play with
Rush Street Interactive is trading at $30.83 per share, or 45x forward P/E. If you’re considering RSI for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Wabtec (WAB)
Consensus Price Target: $300 (9.1% implied return)
Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.
Why Is WAB a Top Pick?
- Annual revenue growth of 9.1% over the last five years beat the sector average and underscores the unique value of its offerings
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Share buybacks catapulted its annual earnings per share growth to 19.9%, which outperformed its revenue gains over the last two years
Wabtec’s stock price of $275 implies a valuation ratio of 26.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
UnitedHealth (UNH)
Consensus Price Target: $407.38 (-4.5% implied return)
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
Why Are We Positive on UNH?
- Annual revenue growth of 11.3% over the last five years was above the sector average and underscores its products and services value to customers
- Massive revenue base of $449.7 billion gives it meaningful leverage when negotiating reimbursement rates
- ROIC punches in at 19.4%, illustrating management’s expertise in identifying profitable investments
At $426.40 per share, UnitedHealth trades at 21.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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.
