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.
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 are three stocks where you should be greedy instead of fearful.
Zscaler (ZS)
Consensus Price Target: $324.53 (-0.6% implied return)
Pioneering the "zero trust" approach that has fundamentally changed enterprise network security, Zscaler (NASDAQ: ZS) provides a cloud-based security platform that connects users, devices, and applications securely without traditional network-based security hardware.
Why Do We Love ZS?
- Customers view its software as mission-critical to their operations as its ARR has averaged 22.6% growth over the last year
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Strong free cash flow margin of 27.2% enables it to reinvest or return capital consistently
At $326.63 per share, Zscaler trades at 15.6x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Lam Research (LRCX)
Consensus Price Target: $155.52 (-1.3% implied return)
Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ: LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.
Why Is LRCX a Good Business?
- Annual revenue growth of 11.2% over the last two years was superb and indicates its market share increased during this cycle
- Free cash flow margin increased by 9.4 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Lam Research’s stock price of $157.60 implies a valuation ratio of 32.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Nextracker (NXT)
Consensus Price Target: $96.65 (-1.6% implied return)
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextracker (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Are We Backing NXT?
- Sales pipeline is in good shape as its backlog averaged 57% growth over the past two years
- Free cash flow margin increased by 15.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are climbing as management makes more lucrative bets
Nextracker is trading at $98.25 per share, or 23.4x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
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 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% 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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