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. Keeping that in mind, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.
Two Stocks to Sell:
ZoomInfo (GTM)
Consensus Price Target: $5.17 (57.8% implied return)
Operating a platform it calls "RevOS" - short for Revenue Operating System - ZoomInfo (NASDAQ: GTM) provides sales, marketing, and recruiting teams with business intelligence and analytics to identify prospects and deliver targeted outreach.
Why Should You Sell GTM?
- Customers had second thoughts about committing to its platform over the last year as its billings plateaued
- Projected sales decline of 5.9% for the next 12 months points to an even tougher demand environment ahead
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 3.9 percentage points
ZoomInfo is trading at $3.28 per share, or 0.8x forward price-to-sales. To fully understand why you should be careful with GTM, check out our full research report (it’s free).
Matthews (MATW)
Consensus Price Target: $38 (40.5% implied return)
Originally a death care company, Matthews International (NASDAQ: MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies.
Why Is MATW Risky?
- Annual revenue declines of 5% over the last five years indicate problems with its market positioning
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Matthews’s stock price of $27.05 implies a valuation ratio of 0.7x trailing 12-month price-to-sales. Check out our free in-depth research report to learn more about why MATW doesn’t pass our bar.
One Stock to Watch:
Boston Scientific (BSX)
Consensus Price Target: $80.16 (63% implied return)
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Do We Like BSX?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 15.7% over the past two years
- Additional sales over the last five years increased its profitability as the 24.2% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin jumped by 9.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $49.18 per share, Boston Scientific trades at 14.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive 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 meet 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
