Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
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 consensus estimates seem disconnected from reality.
One Stock to Sell:
Alta (ALTG)
Consensus Price Target: $10.82 (78.4% implied return)
Founded in 1984, Alta Equipment Group (NYSE: ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.
Why Are We Bearish on ALTG?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2.6% annually over the last two years
- Historically negative EPS raises concerns for risk-averse investors and makes its earnings potential harder to gauge
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Alta’s stock price of $6.07 implies a valuation ratio of 5.7x forward EV-to-EBITDA. If you’re considering ALTG for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Lyft (LYFT)
Consensus Price Target: $19.44 (28.4% implied return)
Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada.
Why Is LYFT a Top Pick?
- Has the opportunity to boost monetization through new features and premium offerings as its active riders have grown by 13.7% annually over the last two years
- Additional sales over the last three years increased its profitability as the 70.4% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 24.8 percentage points over the last few years, giving the company more chips to play with
Lyft is trading at $15.14 per share, or 6.8x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Flowserve (FLS)
Consensus Price Target: $89.10 (20.6% implied return)
Manufacturing the largest pump ever built for nuclear power generation, Flowserve (NYSE: FLS) manufactures and sells flow control equipment for various industries.
Why Are We Fans of FLS?
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin jumped by 7.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $73.89 per share, Flowserve trades at 16.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.
