3 Stocks To Buy (& 3 Stocks To Sell) Before 2027

The premise of this video is simple. Three stocks to buy and three stocks to sell before 2027. And yes, some of the stocks to sell are big-name companies that may be lurking your portfolio, but you may be well-served to get rid of them before they do some serious damage. This is not just my personal opinion. Instead, this is relying upon our proven quant model of Zen Ratings. All in all, it does a deep dive on every stock reviewing 115 unique fundamental, technical, and AI factors. This all gets boiled down to an intuitive letter grade of A to F. And indeed, A-rated stocks deserve those accolades as they have outperformed the market by nearly three to one over the years. Just as importantly, the lower the ratings, the lower the expected results. That's why we often say that C or below ratings equals see you later. All right, with this backdrop in place, let's get to our first stock to buy in Sterling Infrastructure with the symbol of STRL. This is one of the most appealing buy-the-dip opportunities you will ever find. But real quick, want to introduce myself. My name is Steve Reitmeister, but everyone calls me Reity. Now, I'm a partner of Wall Street Zen dot com, where our quant rating system separates the best opportunities from all the noise and nonsense. And if that's your thing, then tap that like button. It tells the algorithm to show you more videos like this. Now, let's get back to the stocks. Sterling used to be a sleepy construction contractor who focused on roads and uh building foundations. Then management went all in on building the ground underneath data centers. The site work, the underground electrical, everything before a single server rack goes in. And as you might imagine, this has been a massive growth area thanks to the AI revolution. Here is what will give you a bit more of a double take when we talk about Sterling. Shares hit a high around $1,000 back in June, and since then have been cut in half. Now, here's the key point. The stock fell apart, but the business prospects continue to point straight up, and that spells opportunity for investors who step in now. They are riding a streak of 14 straight earnings beats. This has created some serious earnings momentum culminating in 115% annual growth in the most recent quarterly report. Management feels confident there are more good times ahead leading to raise guidance for the future. So, why was the stock punished? Well, two main reasons. First is that their earnings beat streak has led to even loftier expectation that becomes harder and harder to fill. Second is that the entire AI group has been seen an ample round of profit taking after dramatic gains over the past few years. Wall Street has not walked away either. All four analysts covering Sterling have issued either a buy or strong Even better is the still lofty fair value price targets. Now, the average is 61% above current levels, whereas the street high target is pounding the table for nearly 100% upside in the year ahead. Let's be clear, the street high target comes from Brent Thielman of Oppenheimer. That matters because he ranks in the top 3% of all analysts based upon his actual stock picking performance. Or let me put it another way, he is such a good stock picker that when he talks about a company like Sterling, it pays to listen. Our Zen ratings confirms the bullish outlook for these shares with a strong B rating. And over the years, B-rated stocks have nearly doubled the returns of the overall market. However, to be clear, Sterling comes in the top 6% of all stocks analyzed by the model, whereas our elite A rating is only for the top 5%. So, truly Sterling is knocking on the door of that A-rated territory. So, maybe it's better to call these shares B+ or even A- that would be more accurate. The 115 factors of the Zen ratings are then compiled into seven component grades that help spell out a stock's unique strengths and weaknesses. Now, that starts off with the top 13% showing for sentiment, proving the smart money crowd is already on board these shares. Next up, we have financial strength in the top 7% all stocks, and the standout grade is for growth in the top 2%, which foreshadows more and more earnings beats ahead. Add it all up and you understand why Wall Street and the Zen ratings are screaming to buy this dip on Sterling. Note that opportunities like this don't stay around for long, so be sure to research these shares now to see if it can earn a spot in your portfolio. Next up, we're going to talk about one of our first stocks to sell now, and this is by far one of the most recognizable names that you will ever hear. But the data is saying it's time to step away. Before I unveil that stock to sell, I just want to be sure to invite you to join me for my next live training session this coming Monday. The focus on timing market insights plus my top picks. Now, it's totally free, but you do need to sign up. Now, you can do that now to join me this coming Monday. Just go to wallstreetzen.com/live. Let's get back to that first stock to sell, and it's Nike. Yeah, Nike. Uh that company that's probably on display in your closet and your shoe rack, right? Here's why I'd be cautious heading into 2027. This is not a company in crisis, rather it's a company that has quietly stopped growing, and that is often the kiss of death for stock investments. Revenue the past fiscal year was essentially flat, and earnings actually slipped from the year before. This business in China, once the growth engine for the company, has been shrinking for years, and its own direct consumer sales have been sliding as well. The stock is showing the wear and tear of all this bad news as the price is down nearly 50% over the last year. Now, you might be thinking to yourself, "Okay, this is another buy the dip opportunity." But without any true signs of a growth turnaround taking place, then that would likely be a very sad mistake. Wall Street is about as bearish as you can get on a stock with 14 hold recommendations, one sell, and one strong sell. Now, let's be honest. When Wall Street says hold, they really mean sell. This means the pros are wholly unconvinced of a turnaround in the works. Zacks Earnings Quant model finds nothing to like in these shares either. Here we have a C rated stock, which kind of sounds neutral on the surface. However, when you dig into the data, turns out that Nike is actually in the bottom 28% of all stocks analyzed. The warning signs are plentiful as we turn to the component grades. Growth sits in the bottom 12% of all stocks. Momentum is even worse, down in the bottom 5%. And for those still drooling over the drop in price, and let me put that end to all that excitement. Our value grade is in the bottom 34% of all stocks, meaning that growth prospects have deteriorated even more than the share price. Hopefully, this problem is not permanent as this is still a desired consumer brand with a long history of success, but a stock does not go up based upon nostalgia. It goes up based upon future earnings growth. And right now, Nike doesn't have it. So, if you're thinking about investing, perhaps it's time to flip around their famous catchphrase and just don't do it. Sorry, I had to say that one. All right, our next stock to buy is the opposite of the Nike story. A business firing on all cylinders and that brings us to our second stock to buy in Semtech with a symbol of SMTC. Now, this is a semiconductor company sitting right in the middle of two things Wall Street can't get enough of right now and that's data centers and connected devices. Semtech makes the analog and mixed-signal chips that move data around inside data centers and across billions of internet-connected gadgets out there in the real world. These are truly essential products at the very heart of the connected economy and that economy is booming as proven by the Wall Street forecast for 50% earnings growth in the year ahead. Yeah, quite opposite the Nike. These same analysts are firmly bullish on shares with 14 of 15 analysts issuing buy or strong buy recommendations. Even more telling their excitement is the fair value price targets. The average target implies an upside of roughly 50% in the year ahead, whereas the street high target points to 100% upside. The Zen Ratings Quant model is also very enthusiastic on these shares. After that full 115 factory review, it scores in the top 2% of all stocks leading to that A rating which typically points to future share price outperformance. Let's pop a hood and see what's behind the strong showing in the component grades. Momentum is in the top 14% of all stocks. Sentiment is impressively in the top 10%. This tells you the smart money is attracted to these shares. Top 6% showing for financials as it should be in this video when we're looking at stocks to buy. We have a top 2% reading for growth which bodes well for more earnings beats and more growth ahead. The one thing to keep in mind is that semiconductor chips are cyclical. Demand runs in waves and when the cycle cools, the stocks quickly decline as well. But right now, the trend is most certainly your friend in the cycle. This is why both Wall Street and the Zen Rings are so firmly on board these shares. And let's not forget those ample fair value price targets pointing to ample upside potential. You might want to place some of your chips on this thriving chip stock. All right, sorry for all the bad puns today. Let's turn the page to our second stock to sell. This is another previous investor favorite that has lost a lot of its luster. That brings us to the underwhelming case for the shares of PayPal with a symbol of PYPL. Now, in case you've been living under a rock, PayPal built the on-ramp for paying online. For years, there was an economic moat around this business that no one could cross. Unfortunately, AI is changing all that much to PayPal's detriment. PayPal's growth has slowed to a crawl. Now, it's branded checkout, the core button you click at register is barely growing any activity at all. As you look at the numbers, and we're talking about both earnings and revenue forecast, they are half the pace of the industry average, right? Which is thriving. So, that's a bad place to start. Business is slow, but even worse is the dark cloud that hangs over their heads as we look out to the future. As more shopping gets handled by AI agents and automated tool, PayPal is getting cut out of the transaction loop. That is a real question mark hanging over the entire business as we go forward. Now, just like Nike, Wall Street is straight-up bearish on these PayPal shares. Only five of 20 analysts are in the buy camp. Sadly, 14 holds and one sell is Wall Street telling clients to stay far, far away from these shares. The Zen Rings quant model is not finding anything to like in PayPal, either. Early on, I mentioned that in our book, C rating or below means see you later. That is certainly true when you appreciate that PayPal is in the bottom 40% of all stocks based upon a truly anemic fundamental [snorts] profile. The uh component grades reveals the many cracks in its foundation. Sentiment lands in the bottom 43% of all stocks saying the smart money crowd is peeling out. Momentum is even worse down the uh bottom 24% of all stocks. And then the one that really tells the whole story here, growth is in the bottom 5% of all stocks tracked and that's about the consistency of growth. And so this rating is truly pathetic. Now one wild card I'll mention and we'll move on is that there has been some on and off chatter about a possible buyout of PayPal. And yes, if a deal comes together the shares will no doubt pop uh overnight on the news. But that isn't a reason to buy shares, just a speculative risk praying for a Hail Mary pass to be completed. Better to just sit this one out given the very low odds of success as we find from the Wall Street and uh Zen ratings review. All right, quick ask before we move on to our next stock. Plain and simple, if you're enjoying this video, then it's time to hit the subscribe button and ring the notification bell. That's because I publish data-driven stock analysis like this every single week and these actions ensure that YouTube actually tells you when the next videos are live. Our third stock to buy today is ICU Medical with a symbol ICUI. And it's this is the kind of quiet, unglamorous name that is too often overlooked, but our system loves them leading to likely share price outperformance. ICU Medical makes the essential plumbing of the hospital. We're talking about the IV pumps, the tubing connectors, the systems that deliver medicine to patients in critical care. It's an extremely sticky business once a hospital builds around your equipment. We have two main things driving the growth here. First is this is an extremely well-run company. That shows up loud and clear in their earnings beat streak that has now grown to 16 straight quarters of operational excellence. Now second is a larger demographic trend of the aging of the population. As more people get older, they need more medical services and that is also a growth driver for ICU Medical and all their peers. Growth is most certainly in the cards as they move ahead. This shows up uh from all the Wall Street analysts singing their praises. More specifically, they are predicting greater than 100% earnings growth in the year ahead. That is about six times the pace of the average company these days. These same analysts are firmly bullish on shares. No hold, no sell recommendation to the bunch. This is a stark departure from Nike and PayPal where analysts are clearly saying to uh take a pass on these shares and to load up on ICU Medical. Once again, the Zen rating shines a light in the bright spots with uh this company. They earn an elite rating of A which amounts to a strong buy recommendation. Uh just a reminder that our A-rated stocks in general outperform the market by nearly three to one. Note that out of 39 companies in this corner of the medical world, our system ranks ICU Medical the single best stock in the group. Its overall strength shines through in the component grades as well. Safety in the top 18% of all stocks, value is also impressive in the top 14%. Note this is based on 21 different measures. So, truly it's attractive from every value perspective. Plus, top 6% for growth and the cherry on top is that top 4% showing for sentiment. one of my favorite things about growth stocks in the medical industry. The large growth component leads to strong performance during the most bullish of times. And then the defensive and safety aspect of healthcare benefits shares during the most bearish of times. This is a very rare and very appealing combination that should have you strongly considering ICU Medical shares. Before we get to that last stock, just a quick thing. If you want to stay one step ahead of the market, then join me live every Monday. That is when I share my updated market outlook and trading plan to outperform. It's also when I unveil my trade of the week based upon our proven Zen Rating's quant model and my greater than 40 years of investing experience. It's a free event, but you do need to register. Now, you can just do that now by going to a wallstreetzen.com/live or click the link in the description down below or scan the QR code shown up on your screen. Now, just pause the video for a moment. I'll be patient and wait for you and then I look forward to seeing you there on Monday. Now, for the final stock to sell today and this one's going to be the most controversial thing I say in the video today and this is to stay far, far away from Coinbase with the symbol of coin. Yes, I want you to sell the biggest name in crypto trading in America. This is the one I would be most careful with as we head into 2027. This is not about me being a cranky old man who hates crypto because some newfangled thing I don't understand. It's much simpler than that. Coinbase has lost money and missed Wall Street estimates for three quarters in a row. In my book, missing estimates is a fatal flaw that shows that management is doing a seriously bad job, and I am not going to put my hard-earned money in the hands of bad managers. Those losses are mounting because users are leaving their platform. In fact, monthly active traders fell to 7.6 million from 8.7 a year ago, and assets in the platform have dropped from 425 billion to 246 billion. Yeah, that's pretty nasty. When crypto goes cold, Coinbase's core business goes cold with it, and right now it's downright icy. It will be a surprise to no one when I share that Coinbase earns a low Lizen rating of F. This means a strong sell recommendation, which seems pretty accurate when I tell you that F-rated stocks have lost nearly 13% a year over the past two decades. If that doesn't sound bad enough, then let me put an exclamation point on that. Coinbase scores in the bottom 1% of all stocks in the model. 99% of stocks are better than Coinbase according to the Lizen ratings model. There is truly nothing to like in the component grades, either, starting with a bottom 16% showing for value. Growth is no better than the bottom 12% Safety even worse, bottom 9%. The momentum is bottom 3%, and the worst on the whole card, sentiment in the bottom 1% of market, mean the smart money is running for the exits. There's no bright spot to point to. Any interest in Coinbase is based on the growth from their distant past. The present picture is as bleak as it gets, and and I hope that compels you guys to not touch these shares with a 10-ft pole, maybe even a 100-ft pole. So, there is your investment road map going into 2027. Three great stocks to buy and three stocks to avoid like the plague. Remember, the Zen ratings are updated every single day on the quote pages at wallstreetzen.com. Thus, it's wise to make a habit to check these ratings before any buy, hold, sell decisions. Now is a good time to bookmark this site for all your future visits. Now, I want to hear from you. Which of these stocks do you agree with me and which do you think I'm just dead wrong? Share all your thoughts in the comments section below for the benefit of our investment community. And if you want to see some more undervalued stocks with serious upside potential, then check out the video that's popping up in your screen right now.