The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
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 are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where its enthusiasm might be excessive.
One Stock to Sell:
Equitable Holdings (EQH)
Consensus Price Target: $60.82 (23.1% implied return)
Tracing its roots back to 1859 as one of America's oldest financial institutions, Equitable Holdings (NYSE: EQH) provides retirement planning, asset management, and life insurance products through its two main franchises, Equitable and AllianceBernstein.
Why Does EQH Worry Us?
- Annual sales growth of 2.5% over the last five years lagged behind its insurance peers as its large revenue base made it difficult to generate incremental demand
- Expenses have increased as a percentage of revenue over the last two years as its pre-tax profit margin fell by 13.3 percentage points
- Book value per share tumbled by 167% annually over the last five years, showing insurance sector trends are working against it during this cycle
At $49.42 per share, Equitable Holdings trades at 6.4x forward P/E. Dive into our free research report to see why there are better opportunities than EQH.
Two Stocks to Watch:
Chipotle (CMG)
Consensus Price Target: $42.94 (28.6% implied return)
Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE: CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.
Why Is CMG on Our Radar?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Enormous revenue base of $12.14 billion provides significant leverage in supplier negotiations
- Industry-leading 19.4% return on capital demonstrates management’s skill in finding high-return investments, and its returns are growing as it capitalizes on even better market opportunities
Chipotle is trading at $33.39 per share, or 27.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Kratos (KTOS)
Consensus Price Target: $109.33 (125% implied return)
Established with a commitment to supporting national security, Kratos (NASDAQ: KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications.
Why Is KTOS Interesting?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 14.6% over the past two years
- Projected revenue growth of 29.9% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings per share have massively outperformed its peers over the last two years, increasing by 15.8% annually
Kratos’s stock price of $48.60 implies a valuation ratio of 56.9x forward P/E. Is now a good time to buy? See for yourself in our full 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
