
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.
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 is one stock where you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
WSFS Financial (WSFS)
Consensus Price Target: $81.17 (5.9% implied return)
Founded in 1832 as Wilmington Savings Fund Society and one of the oldest banks in America still operating under its original name, WSFS Financial (NASDAQ: WSFS) operates a community banking and wealth management franchise primarily serving customers in the Mid-Atlantic region through its main subsidiary, WSFS Bank.
Why Is WSFS Not Exciting?
- Muted 9.7% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Estimated net interest income growth of 3.3% for the next 12 months implies demand will slow from its five-year trend
- Estimated tangible book value per share growth of 9.3% for the next 12 months implies profitability will slow from its two-year trend
At $76.62 per share, WSFS Financial trades at 1.4x forward P/B. Dive into our free research report to see why there are better opportunities than WSFS.
National Bank Holdings (NBHC)
Consensus Price Target: $48.25 (8.2% implied return)
Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE: NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.
Why Does NBHC Fall Short?
- Sales trends were unexciting over the last two years as its 2.6% annual growth was below the typical banking company
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
- Capital trends were unexciting over the last five years as its 2.1% annual tangible book value per share growth was below the typical banking firm
National Bank Holdings’s stock price of $44.58 implies a valuation ratio of 1.1x forward P/B. Read our free research report to see why you should think twice about including NBHC in your portfolio.
One Stock to Watch:
MACOM (MTSI)
Consensus Price Target: $398.36 (3% implied return)
Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
Why Do We Like MTSI?
- Market share has increased this cycle as its 29.8% annual revenue growth over the last two years was exceptional
- Demand will likely accelerate over the next 12 months as its forecasted revenue growth of 36.5% is above its two-year trend
- Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 18.4% annually
MACOM is trading at $386.60 per share, or 59.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
