When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as 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 where Wall Street’s pessimism is creating a buying opportunity and one where the outlook is warranted.
Two Stocks to Watch:
Coherent (COHR)
Consensus Price Target: $178.47 (-0.2% implied return)
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE: COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Is COHR on Our Radar?
- Impressive 16.9% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Market share is on track to rise over the next 12 months as its 14.9% projected revenue growth implies demand will accelerate from its two-year trend
- Earnings per share have massively outperformed its peers over the last two years, increasing by 38.4% annually
At $178.75 per share, Coherent trades at 31.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Planet Labs (PL)
Consensus Price Target: $18.59 (5.6% implied return)
Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE: PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.
Why Should You Buy PL?
- Impressive 23.1% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Free cash flow profile has moved into positive territory over the last five years, indicating the company has passed a significant test
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Planet Labs is trading at $17.60 per share, or 655.4x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 5 Growth Stocks for this month. 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 Kadant (+351% 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.
