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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here is one stock where Wall Street’s excitement appears well-founded and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Constellation Brands (STZ)
Consensus Price Target: $171 (29.4% implied return)
With a presence in more than 100 countries, Constellation Brands (NYSE: STZ) is a globally renowned producer and marketer of beer, wine, and spirits.
Why Do We Think Twice About STZ?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Projected sales growth of 1.1% for the next 12 months suggests sluggish demand
- Earnings per share lagged its peers over the last three years as they only grew by 3.3% annually
At $132.19 per share, Constellation Brands trades at 11.4x forward P/E. To fully understand why you should be careful with STZ, check out our full research report (it’s free).
Agilent (A)
Consensus Price Target: $159.32 (17.8% implied return)
Originally spun off from Hewlett-Packard in 1999 as its measurement and analytical division, Agilent Technologies (NYSE: A) provides analytical instruments, software, services, and consumables for laboratory workflows in life sciences, diagnostics, and applied chemical markets.
Why Are We Cautious About A?
- 4.5% annual revenue growth over the last five years was slower than its healthcare peers
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Diminishing returns on capital suggest its earlier profit pools are drying up
Agilent is trading at $135.29 per share, or 21.2x forward P/E. Dive into our free research report to see why there are better opportunities than A.
One Stock to Buy:
AppLovin (APP)
Consensus Price Target: $654.60 (45.8% implied return)
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ: APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
Why Will APP Beat the Market?
- Annual revenue growth of 30.4% over the past two years was outstanding, reflecting market share gains
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Robust free cash flow margin of 71.9% gives it many options for capital deployment
AppLovin’s stock price of $448.92 implies a valuation ratio of 16.9x forward price-to-sales. Is now the time to initiate a position? 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.
