
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 analysts may be overlooking some important risks.
One Stock to Sell:
Taboola (TBLA)
Consensus Price Target: $4.80 (42.9% implied return)
Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola (NASDAQ: TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.
Why Are We Cautious About TBLA?
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 5.2 percentage points
- Earnings per share have dipped by 25.3% annually over the past four years, which is concerning because stock prices follow EPS over the long term
- Negative returns on capital show management lost money while trying to expand the business
Taboola’s stock price of $3.36 implies a valuation ratio of 7.5x forward P/E. To fully understand why you should be careful with TBLA, check out our full research report (it’s free).
Two Stocks to Watch:
Limbach (LMB)
Consensus Price Target: $118 (27.4% implied return)
Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.
Why Are We Fans of LMB?
- Operating margin increased by 6 percentage points over the last five years as it refined its cost structure
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 42.5% annually, topping its revenue gains
- Free cash flow margin jumped by 8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $92.63 per share, Limbach trades at 21.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Nasdaq (NDAQ)
Consensus Price Target: $107.73 (31.1% implied return)
Originally founded in 1971 as the world's first electronic stock market, Nasdaq (NASDAQ: NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.
Why Do We Watch NDAQ?
- Impressive 16.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Annual earnings per share growth of 11.1% over the last five years modestly outpaced its peers
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Nasdaq is trading at $82.16 per share, or 20.6x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.