Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
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. Keeping that in mind, here are two stocks where Wall Street’s pessimism is creating a buying opportunity and one facing legitimate challenges.
One Stock to Sell:
Teradyne (TER)
Consensus Price Target: $201.88 (4.4% implied return)
Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.
Why Does TER Worry Us?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.1% annually over the last five years
- Inability to adjust its cost structure while its revenue declined over the last five years led to a 15.1 percentage point drop in the company’s operating margin
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
Teradyne is trading at $193.33 per share, or 38.6x forward P/E. To fully understand why you should be careful with TER, check out our full research report (it’s free for active Edge members).
Two Stocks to Buy:
FuelCell Energy (FCEL)
Consensus Price Target: $8.71 (18.8% implied return)
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
Why Are We Backing FCEL?
- Sales pipeline is in good shape as its backlog averaged 9.9% growth over the past two years
- Earnings per share grew by 25.9% annually over the last two years and trumped its peers
- Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability
FuelCell Energy’s stock price of $7.33 implies a valuation ratio of 1.5x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Carlyle (CG)
Consensus Price Target: $66.27 (11.6% implied return)
Founded in 1987 with just $5 million in capital and named after the iconic New York hotel where the founders first met, The Carlyle Group (NASDAQ:CG) is a global investment firm that raises, manages, and deploys capital across private equity, credit, and investment solutions.
Why Is CG a Top Pick?
- Annual revenue growth of 10.9% over the last five years was above the sector average and underscores its products and services value to customers
- Fee-related earnings increased by 23.6% annually over the last two years as it refined its cost structure
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 23.9% annually, topping its revenue gains
At $59.35 per share, Carlyle trades at 13.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 6 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 (+1,326% 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.