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.
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 its enthusiasm might be excessive.
One Stock to Sell:
Coty (COTY)
Consensus Price Target: $3.17 (60.2% implied return)
With a portfolio boasting many household brands, Coty (NYSE: COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.
Why Do We Steer Clear of COTY?
- 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
- Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
- Incremental sales over the last three years were much less profitable as its earnings per share fell by 29.3% annually while its revenue grew
At $1.98 per share, Coty trades at 5.7x forward P/E. To fully understand why you should be careful with COTY, check out our full research report (it’s free).
Two Stocks to Watch:
HubSpot (HUBS)
Consensus Price Target: $280.16 (39.6% implied return)
Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE: HUBS) provides an integrated platform that helps businesses attract, engage, and manage customer relationships through marketing, sales, service, and content management tools.
Why Could HUBS Be a Winner?
- Billings growth has averaged 22.3% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Prominent and differentiated software culminates in a top-tier gross margin of 83.7%
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
HubSpot is trading at $200.63 per share, or 2.8x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Construction Partners (ROAD)
Consensus Price Target: $153.33 (37.5% implied return)
Founded in 2001, Construction Partners (NASDAQ: ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.
Why Are We Backing ROAD?
- Impressive 39.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 46.7% over the last two years outstripped its revenue performance
- Free cash flow margin expanded by 7.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Construction Partners’s stock price of $111.54 implies a valuation ratio of 35.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
