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.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here are two stocks where Wall Street’s excitement appears well-founded and one where its enthusiasm might be excessive.

One Stock to Sell:

Chewy (CHWY)

Consensus Price Target: $44.45 (67.9% implied return)

Founded by Ryan Cohen, who later became known for his involvement in GameStop, Chewy (NYSE: CHWY) is an online retailer specializing in pet food, supplies, and healthcare services.

Why Are We Cautious About CHWY?

1. The company has faced growth challenges as its 8.5% annual revenue increases over the last three years fell short of other consumer internet companies
2. Estimated sales growth of 6.1% for the next 12 months implies demand will slow from its three-year trend
3. Bad unit economics and steep infrastructure costs are reflected in its low gross margin of 29.4%

Chewy is trading at $26.48 per share, or 12.9x forward EV/EBITDA. If you’re considering CHWY for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

S&P Global (SPGI)

Consensus Price Target: $540.52 (29.6% implied return)

Tracing its roots back to 1860 when it published the first railroad industry manual, S&P Global (NYSE: SPGI) provides credit ratings, market intelligence, commodity data, automotive analytics, and financial indices that help investors and businesses make decisions.

Why Is SPGI Interesting?

1. Annual revenue growth of 10.8% over the last two years was above the sector average and underscores its products and services value to customers
2. Share buybacks propelled its annual earnings per share growth to 18.9%, which outperformed its revenue gains over the last two years
3. ROE punches in at 23.3%, illustrating management’s expertise in identifying profitable investments

At $417 per share, S&P Global trades at 21.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Sallie Mae (SLM)

Consensus Price Target: $31.64 (39.5% implied return)

Originally created as a government-sponsored enterprise before privatizing in 2004, Sallie Mae (NASDAQ: SLM) is a financial services company that provides private education loans, savings products, and educational resources to help students and families pay for college.

Why Are We Fans of SLM?

1. Share repurchases have increased shareholder returns as its annual earnings per share growth of 20.2% exceeded its revenue gains over the last two years
2. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

Sallie Mae’s stock price of $22.68 implies a valuation ratio of 8.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.