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 positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Terex (TEX)
Consensus Price Target: $76.79 (32.4% implied return)
With humble beginnings as a dump truck company, Terex (NYSE: TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials.
Why Does TEX Give Us Pause?
- 6.7% annual revenue growth over the last two years was slower than its industrials peers
- Earnings per share fell by 47.3% annually over the last two years while its revenue grew, partly because it diluted shareholders
- Diminishing returns on capital suggest its earlier profit pools are drying up
Terex is trading at $57.99 per share, or 11.7x forward P/E. Dive into our free research report to see why there are better opportunities than TEX.
Verisk (VRSK)
Consensus Price Target: $220.47 (20.5% implied return)
Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.
Why Are We Cautious About VRSK?
- 1.9% annual revenue growth over the last five years was slower than its business services peers
- Earnings per share lagged its peers over the last two years as they only grew by 9.3% annually
At $183.00 per share, Verisk trades at 20.5x forward P/E. Read our free research report to see why you should think twice about including VRSK in your portfolio.
One Stock to Buy:
AppLovin (APP)
Consensus Price Target: $644.47 (30.7% 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 Do We Love APP?
- Impressive 30.4% annual revenue growth over the last two years indicates it’s winning market share
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Robust free cash flow margin of 71.9% gives it many options for capital deployment
AppLovin’s stock price of $493.25 implies a valuation ratio of 19.1x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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 meeting 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
