Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.

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. That said, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two where the skepticism is well-placed.

Two Stocks to Sell:

Lucid (LCID)

Consensus Price Target: $23.79 (-1.3% implied return)

Founded by a former Tesla Vice President, Lucid Group (NASDAQ: LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities.

Why Are We Hesitant About LCID?

1. Negative 155% gross margin means it loses money on every sale and must pivot or scale quickly to survive
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Lucid is trading at $24.11 per share, or 37.3x forward price-to-sales. Check out our free in-depth research report to learn more about why LCID doesn’t pass our bar.

Eastern Bank (EBC)

Consensus Price Target: $20.20 (11.2% implied return)

Founded in 1818 as one of America's oldest mutual banks before converting to a public company in 2020, Eastern Bankshares (NASDAQ: EBC) operates as a bank holding company providing commercial and retail banking services primarily in Massachusetts, New Hampshire, and Rhode Island.

Why Do We Think Twice About EBC?

1. Annual revenue growth of 1.5% over the last five years was below our standards for the banking sector
2. Tangible book value per share tumbled by 6.8% annually over the last four years, showing banking sector trends are working against its favor during this cycle
3. Projected tangible book value per share decline of 5.5% for the next 12 months points to tough credit quality challenges ahead

Eastern Bank’s stock price of $18.16 implies a valuation ratio of 1.1x forward P/B. Read our free research report to see why you should think twice about including EBC in your portfolio.

One Stock to Buy:

StepStone Group (STEP)

Consensus Price Target: $70.83 (6.4% implied return)

Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ: STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.

Why Do We Love STEP?

1. Market share has increased this cycle as its 32.9% annual revenue growth over the last two years was exceptional
2. Earnings per share grew by 33.8% annually over the last two years, massively outpacing its peers
3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

At $66.60 per share, StepStone Group trades at 33.8x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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