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2 of Wall Street’s Favorite Stocks on Our Watchlist and 1 That Underwhelm

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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.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here are two stocks likely to meet or exceed Wall Street’s lofty expectations and one where analysts may be overlooking some important risks.

One Stock to Sell:

Viavi Solutions (VIAV)

Consensus Price Target: $61.43 (42.7% implied return)

Once known as JDS Uniphase before its 2015 rebranding, Viavi Solutions (NASDAQ: VIAV) provides testing, monitoring and assurance solutions for telecommunications, cloud, enterprise, military, and other critical networks and infrastructure.

Why Does VIAV Fall Short?

  1. Sales trends were unexciting over the last five years as its 4.8% annual growth was below the typical industrials company
  2. Free cash flow margin dropped by 14.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $43.06 per share, Viavi Solutions trades at 23.4x forward P/E. Check out our free in-depth research report to learn more about why VIAV doesn’t pass our bar.

Two Stocks to Watch:

BrightSpring Health Services (BTSG)

Consensus Price Target: $78.94 (31.4% implied return)

Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.

Why Do We Like BTSG?

  1. Impressive 23.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Revenue base of $14.37 billion gives it economies of scale and some negotiating power
  3. Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory

BrightSpring Health Services’s stock price of $60.07 implies a valuation ratio of 28.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

RB Global (RBA)

Consensus Price Target: $128.91 (48.7% implied return)

Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE: RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.

Why Is RBA a Good Business?

  1. Impressive 27.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
  2. Earnings growth has trumped its peers over the last five years as its EPS has compounded at 19.3% annually
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

RB Global is trading at $86.71 per share, or 19.2x 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

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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

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