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 positive outlook is supported by strong fundamentals and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Asure Software (ASUR)
Consensus Price Target: $13.38 (72.1% implied return)
Operating in the often-overlooked smaller metropolitan markets where HR expertise can be scarce, Asure Software (NASDAQ: ASUR) provides cloud-based human capital management software and services that help small and medium-sized businesses manage payroll, taxes, time tracking, and HR compliance.
Why Are We Cautious About ASUR?
- Sales trends were unexciting over the last two years as its 12.3% annual growth was below the typical software company
- Estimated sales growth of 10.4% for the next 12 months implies demand will slow from its two-year trend
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Asure Software’s stock price of $7.77 implies a valuation ratio of 1.4x forward price-to-sales. If you’re considering ASUR for your portfolio, see our FREE research report to learn more.
Kosmos Energy (KOS)
Consensus Price Target: $3.11 (48.8% implied return)
Operating in some of the world's deepest waters with projects located up to 120 kilometers offshore, Kosmos Energy (NYSE: KOS) explores for, develops, and produces oil and natural gas from deepwater offshore fields.
Why Does KOS Fall Short?
- Revenue base of $1.37 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Expenses have increased as a percentage of revenue over the last five years as its EBITDA margin fell by 11.9 percentage points
- Cash-burning history makes us doubt the long-term viability of its business model
Kosmos Energy is trading at $2.09 per share, or 6.2x forward P/E. To fully understand why you should be careful with KOS, check out our full research report (it’s free).
One Stock to Buy:
Limbach (LMB)
Consensus Price Target: $116.60 (48% implied return)
Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.
Why Are We Backing LMB?
- Market share has increased this cycle as its 12.6% annual revenue growth over the last two years was exceptional
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 29.1% annually, topping its revenue gains
- Free cash flow margin grew by 7.3 percentage points over the last five years, giving the company more chips to play with
At $78.81 per share, Limbach trades at 18.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
