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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where its enthusiasm might be excessive.
One Stock to Sell:
Xponential Fitness (XPOF)
Consensus Price Target: $7.69 (16.9% implied return)
Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE: XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.
Why Are We Out on XPOF?
- Flat sales over the last two years suggest it must innovate and find new ways to grow
- Historical operating margin losses point to an inefficient cost structure
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 2 percentage points
Xponential Fitness’s stock price of $6.58 implies a valuation ratio of 9.3x forward P/E. To fully understand why you should be careful with XPOF, check out our full research report (it’s free).
Two Stocks to Watch:
Xylem (XYL)
Consensus Price Target: $150.82 (27.3% implied return)
Formed through a spinoff, Xylem (NYSE: XYL) manufactures and services engineered products across a wide variety of applications primarily in the water sector.
Why Could XYL Be a Winner?
- Market share has increased this cycle as its 12.7% annual revenue growth over the last five years was exceptional
- Additional sales over the last five years increased its profitability as the 16.7% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 5.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Xylem is trading at $118.48 per share, or 20.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
JBT Marel (JBTM)
Consensus Price Target: $183.50 (55.3% implied return)
Tracing back to its invention of the mechanical milk bottle filler in 1884, JBT Marel (NYSE: JBTM) designs, manufactures, and sells equipment used for food processing and aviation.
Why Does JBTM Stand Out?
- Annual revenue growth of 51.1% over the last two years was superb and indicates its market share increased during this cycle
- Healthy unit economics are reflected in its 34.9% gross margin and give it more money to invest in marketing and R&D
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 20.1% annually
At $118.15 per share, JBT Marel trades at 14.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.
