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1 of Wall Street’s Favorite Stock with Competitive Advantages and 2 We Avoid

CXT Cover Image

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. That said, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

Crane NXT (CXT)

Consensus Price Target: $73 (60.2% implied return)

Born from a corporate transformation completed in 2023, Crane NXT (NYSE: CXT) provides specialized technology solutions for payment processing, banknote security, and authentication systems for financial institutions and businesses.

Why Are We Wary of CXT?

  1. Muted 3.3% annual revenue growth over the last three years shows its demand lagged behind its business services peers
  2. Earnings per share fell by 1.3% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
  3. 7.9 percentage point decline in its free cash flow margin over the last four years reflects the company’s increased investments to defend its market position

At $45.57 per share, Crane NXT trades at 10.5x forward P/E. Check out our free in-depth research report to learn more about why CXT doesn’t pass our bar.

Affiliated Managers Group (AMG)

Consensus Price Target: $375.14 (23.6% implied return)

Using a partnership approach that preserves entrepreneurial culture at its portfolio companies, Affiliated Managers Group (NYSE: AMG) is an investment firm that acquires stakes in boutique asset management companies while allowing them to maintain operational independence.

Why Does AMG Worry Us?

  1. Sales were flat over the last two years, indicating it’s failed to expand this cycle

Affiliated Managers Group is trading at $303.43 per share, or 8.7x forward P/E. Read our free research report to see why you should think twice about including AMG in your portfolio.

One Stock to Watch:

Sallie Mae (SLM)

Consensus Price Target: $28.27 (28.3% implied return)

Originally created as a government-sponsored enterprise before privatizing in 2004, Sallie Mae (NASDAQ: SLM) is a financial services company that provides private education loans, savings products, and educational resources to help students and families pay for college.

Why Are We Fans of SLM?

  1. Share repurchases over the last two years enabled its annual earnings per share growth of 20.2% to outpace its revenue gains
  2. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

Sallie Mae’s stock price of $22.04 implies a valuation ratio of 7.8x forward P/E. Is now a good time to buy? See for yourself in our in-depth 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 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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