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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, 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:
SAIC (SAIC)
Consensus Price Target: $116.22 (27.7% implied return)
With over five decades of experience supporting national security missions, Science Applications International Corporation (NASDAQ: SAIC) provides technical, engineering, and enterprise IT services primarily to U.S. government agencies and military branches.
Why Do We Avoid SAIC?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.1% annually over the last two years
- Estimated sales for the next 12 months are flat and imply a softer demand environment
SAIC’s stock price of $91.03 implies a valuation ratio of 9.7x forward P/E. Check out our free in-depth research report to learn more about why SAIC doesn’t pass our bar.
Two Stocks to Watch:
Verra Mobility (VRRM)
Consensus Price Target: $28.71 (53.4% implied return)
Aiming to wrap technology and data around a historically manual and paper-based industry, Verra Mobility (NYSE: VRRM) is a leading provider of smart mobility technology to address tolls and violations, title and registration services, as well as safety and traffic enforcement.
Why Are We Fans of VRRM?
- Annual revenue growth of 18.4% over the past five years was outstanding, reflecting market share gains this cycle
- Offerings are mission-critical for businesses and lead to a best-in-class gross margin of 61.8%
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 20.4% annually
At $18.71 per share, Verra Mobility trades at 13.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Alignment Healthcare (ALHC)
Consensus Price Target: $25.17 (22% implied return)
Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ: ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination.
Why Is ALHC a Good Business?
- Average customer growth of 25.9% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
- Earnings per share grew by 30.1% annually over the last four years, massively outpacing its peers
- Free cash flow profile has moved into positive territory over the last five years, showing the company has crossed a key inflection point
Alignment Healthcare is trading at $20.62 per share, or 58.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
