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.
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 poised to prove Wall Street wrong and one where the outlook is warranted.
One Stock to Sell:
TFS Financial (TFSL)
Consensus Price Target: $14 (2.6% implied return)
Tracing its roots back to 1938 during the Great Depression era when savings and loans were vital to homeownership, TFS Financial (NASDAQ: TFSL) is a savings and loan holding company that provides mortgage lending, deposit services, and other retail banking products primarily in Ohio and Florida.
Why Do We Pass on TFSL?
- Muted 2.1% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Net interest margin of 1.7% is well below other banks, signaling its loans aren’t very profitable
- Products and services are facing profitability challenges during this cycle, as seen in its flat tangible book value per share over the last two years
TFS Financial’s stock price of $13.64 implies a valuation ratio of 2x forward P/B. If you’re considering TFSL for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Globus Medical (GMED)
Consensus Price Target: $90 (9.4% implied return)
With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE: GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.
Why Are We Positive On GMED?
- Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 58.8% over the past two years
- Earnings per share grew by 21.6% annually over the last five years and trumped its peers
- GMED is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $82.30 per share, Globus Medical trades at 20.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Paymentus (PAY)
Consensus Price Target: $38.83 (19% implied return)
Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE: PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.
Why Will PAY Beat the Market?
- Annual revenue growth of 39% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 86.3% over the last two years outstripped its revenue performance
Paymentus is trading at $32.64 per share, or 44x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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-small-cap company Comfort Systems (+782% 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
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