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.
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 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:
Bloomin' Brands (BLMN)
Consensus Price Target: $11.23 (39.6% implied return)
Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ: BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Why Do We Avoid BLMN?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Bloomin' Brands’s stock price of $8.05 implies a valuation ratio of 8.8x forward P/E. To fully understand why you should be careful with BLMN, check out our full research report (it’s free).
Two Stocks to Buy:
Alignment Healthcare (ALHC)
Consensus Price Target: $22.23 (166% 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 Should You Buy ALHC?
- Annual revenue growth of 43.2% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 47.9% annually, topping its revenue gains
- Free cash flow margin grew by 6.8 percentage points over the last five years, giving the company more chips to play with
Alignment Healthcare is trading at $8.37 per share, or 14.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
ATI (ATI)
Consensus Price Target: $259.89 (35.6% implied return)
With its materials flying in nearly every commercial and military aircraft in service today, ATI (NYSE: ATI) produces highly specialized materials and components for aerospace, defense, medical, and energy applications using advanced metallurgy and manufacturing processes.
Why Will ATI Beat the Market?
- Annual revenue growth of 12.9% over the past five years was outstanding, reflecting market share gains this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin increased by 18.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $191.71 per share, ATI trades at 31.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.
