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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where consensus estimates seem disconnected from reality.
One Stock to Sell:
Skyworks Solutions (SWKS)
Consensus Price Target: $78.90 (34.7% implied return)
Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.
Why Do We Pass on SWKS?
- Sales tumbled by 7.5% annually over the last two years, showing market trends are working against its favor during this cycle
- Forecasted revenue decline of 10.7% for the upcoming 12 months implies demand will fall even further
- Efficiency has decreased over the last five years as its operating margin fell by 19.3 percentage points
Skyworks Solutions’s stock price of $58.58 implies a valuation ratio of 13x forward P/E. Read our free research report to see why you should think twice about including SWKS in your portfolio.
Two Stocks to Watch:
HCI Group (HCI)
Consensus Price Target: $245 (40.1% implied return)
Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE: HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing.
Why Should You Buy HCI?
- Net premiums earned surged by 28% annually over the past two years, reflecting strong market share gains this cycle
- Annual book value per share growth of 65.1% over the last two years was superb and indicates its capital strength increased during this cycle
- Notable projected book value per share growth of 36.9% for the next 12 months hints at strong capital generation
At $174.92 per share, HCI Group trades at 2.3x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Fidelity National Financial (FNF)
Consensus Price Target: $70 (29.3% implied return)
Issuing more title insurance policies than any other company in the United States, Fidelity National Financial (NYSE: FNF) provides title insurance and escrow services for real estate transactions while also offering annuities and life insurance through its F&G subsidiary.
Why Does FNF Stand Out?
- Forecasted revenue growth of 8% for the next 12 months indicates its momentum over the last two years is sustainable
- Pre-tax profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
- ROE punches in at 17.8%, illustrating management’s expertise in identifying profitable investments
Fidelity National Financial is trading at $54.12 per share, or 1.5x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
