1 of Wall Street’s Favorite Stocks with Exciting Potential and 2 We Turn Down

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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 is one stock where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

Shutterstock (SSTK)

Consensus Price Target: $28.85 (229% implied return)

Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE: SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.

Why Should You Sell SSTK?

  1. Focus on expanding its platform came at the expense of monetization as its average revenue per request fell by 87.9% annually
  2. Sales are projected to tank by 19% over the next 12 months as demand evaporates
  3. Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 6.3% annually

At $8.78 per share, Shutterstock trades at 0.7x forward price-to-gross profit. Read our free research report to see why you should think twice about including SSTK in your portfolio.

Tandem Diabetes (TNDM)

Consensus Price Target: $29.20 (89% implied return)

With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ: TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels.

Why Should You Dump TNDM?

  1. Earnings per share fell by 19.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
  2. Negative returns on capital show management lost money while trying to expand the business, and its shrinking returns suggest its past profit sources are losing steam
  3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Tandem Diabetes’s stock price of $15.45 implies a valuation ratio of 17.8x forward EV-to-EBITDA. If you’re considering TNDM for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Jack Henry (JKHY)

Consensus Price Target: $188 (28.3% implied return)

Founded in 1976 by two entrepreneurs who saw the need for specialized banking software in the early days of financial computing, Jack Henry & Associates (NASDAQ: JKHY) provides technology solutions that help banks and credit unions innovate, differentiate, and compete while serving the evolving needs of their accountholders.

Why Is JKHY a Top Pick?

  1. Products and services resonate with customers, evidenced by its respectable 7.7% annualized sales growth over the last five years
  2. Performance over the past two years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
  3. Industry-leading 24.1% return on equity demonstrates management’s skill in finding high-return investments

Jack Henry is trading at $146.58 per share, or 21.4x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.

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