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.

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 likely to meet or exceed Wall Street’s lofty expectations and one where analysts may be overlooking some important risks.

One Stock to Sell:

NVR (NVR)

Consensus Price Target: $8,004 (22.6% implied return)

Known for its unique land acquisition strategy, NVR (NYSE: NVR) is a respected homebuilder and mortgage company in the United States.

Why Should You Dump NVR?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4.1% over the last two years was below our standards for the industrials sector
2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 2.8% annually
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $6,530 per share, NVR trades at 16.4x forward P/E. Dive into our free research report to see why there are better opportunities than NVR.

Two Stocks to Watch:

Veeva Systems (VEEV)

Consensus Price Target: $270.93 (51.6% implied return)

Originally named "Verticals onDemand" before rebranding in 2009, Veeva Systems (NYSE: VEEV) provides cloud software, data solutions, and consulting services that help life sciences companies develop and bring products to market more efficiently.

Why Does VEEV Stand Out?

1. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
2. Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 28.7%, and its operating leverage amplified its profits over the last year
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Veeva Systems is trading at $178.72 per share, or 8.3x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

DexCom (DXCM)

Consensus Price Target: $87.13 (32% implied return)

Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ: DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.

Why Are We Bullish on DXCM?

1. Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 14.1% over the past two years
2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Free cash flow margin increased by 20.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders

DexCom’s stock price of $66.03 implies a valuation ratio of 26.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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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.