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.
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 is one stock likely to meet or exceed Wall Street’s lofty expectations and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Matrix Service (MTRX)
Consensus Price Target: $19 (83.8% implied return)
Founded in Oklahoma, Matrix Service (NASDAQ: MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.
Why Does MTRX Worry Us?
- 1.1% annual revenue growth over the last five years was slower than its industrials peers
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 3.7%
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 21.4% annually
Matrix Service’s stock price of $10.34 implies a valuation ratio of 15.2x forward P/E. Check out our free in-depth research report to learn more about why MTRX doesn’t pass our bar.
Renasant (RNST)
Consensus Price Target: $44.43 (24.5% implied return)
Founded in 1904 during a time when the South was rebuilding its economy, Renasant (NYSE: RNST) is a regional bank holding company that offers banking, wealth management, insurance, and specialized lending services throughout the Southeast.
Why Does RNST Give Us Pause?
- Sales trends were unexciting over the last five years as its 8.1% annual growth was below the typical banking company
- Earnings per share fell by 2.1% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Capital trends were unexciting over the last two years as its 3.7% annual tangible book value per share growth was below the typical banking firm
At $35.69 per share, Renasant trades at 0.8x forward P/B. Read our free research report to see why you should think twice about including RNST in your portfolio.
One Stock to Buy:
EMCOR (EME)
Consensus Price Target: $869.29 (19.7% implied return)
Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services
Why Should You Buy EME?
- Annual revenue growth of 16.2% over the last two years was superb and indicates its market share increased during this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 45.6% exceeded its revenue gains over the last two years
- Rising returns on capital show management is finding more attractive investment opportunities
EMCOR is trading at $726.07 per share, or 25.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
