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1 of Wall Street’s Favorite Stocks with Exciting Potential and 2 That Underwhelm

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NCNO Cover Image

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. Keeping that in mind, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.

Two Stocks to Sell:

nCino (NCNO)

Consensus Price Target: $23.08 (55.4% implied return)

Born from the internal technology needs of a community bank in 2011, nCino (NASDAQ: NCNO) provides cloud-based software that helps financial institutions streamline client onboarding, loan origination, and account opening processes.

Why Are We Hesitant About NCNO?

  1. Average billings growth of 9.5% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
  2. Estimated sales growth of 7.6% for the next 12 months implies demand will slow from its two-year trend
  3. Gross margin of 61.6% is below its competitors, leaving less money to invest in areas like marketing and R&D

At $14.85 per share, nCino trades at 2.5x forward price-to-sales. To fully understand why you should be careful with NCNO, check out our full research report (it’s free).

Wynn Resorts (WYNN)

Consensus Price Target: $135.89 (30.7% implied return)

Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ: WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.

Why Do We Avoid WYNN?

  1. Muted 2.3% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
  2. Low free cash flow margin of 10.2% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
  3. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital on unfavorable terms if market conditions deteriorate

Wynn Resorts is trading at $104 per share, or 23.8x forward P/E. If you’re considering WYNN for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Remitly (RELY)

Consensus Price Target: $28.56 (35.3% implied return)

With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ: RELY) is an online platform that enables consumers to safely and quickly send money globally.

Why Are We Backing RELY?

  1. Has the opportunity to boost monetization through new features and premium offerings as its active customers have grown by 28.4% annually over the last two years
  2. Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 247% outpaced its revenue gains
  3. Free cash flow margin grew by 35.2 percentage points over the last few years, giving the company more chips to play with

Remitly’s stock price of $21.11 implies a valuation ratio of 10x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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