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.
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 are two stocks likely to meet or exceed Wall Street’s lofty expectations and one where its enthusiasm might be excessive.
One Stock to Sell:
Zillow (ZG)
Consensus Price Target: $62.86 (84.9% implied return)
Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ: ZG) is the leading U.S. online real estate marketplace.
Why Should You Dump ZG?
- Products and services have few die-hard fans as sales have declined by 4.7% annually over the last five years
- Earnings per share lagged its peers over the last five years as they only grew by 10.6% annually
- Poor free cash flow margin of 12.8% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Zillow is trading at $34 per share, or 13.4x forward P/E. To fully understand why you should be careful with ZG, check out our full research report (it’s free).
Two Stocks to Buy:
DoorDash (DASH)
Consensus Price Target: $244.68 (28.2% implied return)
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ: DASH) operates an on-demand food delivery platform.
What Makes DASH Stand Out?
- Orders have increased by an average of 22.9% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 179% annually, topping its revenue gains
At $190.92 per share, DoorDash trades at 21.4x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
American Superconductor (AMSC)
Consensus Price Target: $65.33 (75.2% implied return)
Founded in 1987, American Superconductor (NASDAQ: AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.
Why Will AMSC Beat the Market?
- Annual revenue growth of 43.3% over the last two years was superb and indicates its market share increased during this cycle
- Free cash flow margin expanded by 24.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Historical investments are beginning to pay off as its returns on capital are growing
American Superconductor’s stock price of $37.30 implies a valuation ratio of 35.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
