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2 of Wall Street’s Favorite Stocks on Our Watchlist and 1 We Avoid

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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 its enthusiasm might be excessive.

One Stock to Sell:

Boston Beer (SAM)

Consensus Price Target: $224.55 (31.9% implied return)

Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE: SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.

Why Do We Pass on SAM?

  1. Sales tumbled by 2.1% annually over the last three years, showing consumer trends are working against it
  2. Inability to adjust its cost structure while its revenue declined over the last year led to a 8.7 percentage point drop in the company’s operating margin
  3. Underwhelming -0.3% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam

Boston Beer is trading at $170.19 per share, or 17.3x forward P/E. Read our free research report to see why you should think twice about including SAM in your portfolio.

Two Stocks to Watch:

TaskUs (TASK)

Consensus Price Target: $9.50 (62.1% implied return)

Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ: TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies.

Why Does TASK Stand Out?

  1. Annual revenue growth of 18.1% over the past five years was outstanding, reflecting market share gains this cycle
  2. Free cash flow margin expanded by 19.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
  3. Returns on capital are increasing as management’s prior bets are starting to bear fruit

At $5.86 per share, TaskUs trades at 4.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

StepStone Group (STEP)

Consensus Price Target: $67.63 (51% implied return)

Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ: STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.

Why Is STEP on Our Radar?

  1. Impressive 40.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Earnings per share grew by 33.1% annually over the last two years and trumped its peers

StepStone Group’s stock price of $44.77 implies a valuation ratio of 18x forward P/E. Is now the right time to buy? See for yourself in our comprehensive 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 meet 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 (+1,460% 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.

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