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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where consensus estimates seem disconnected from reality.
One Stock to Sell:
CACI (CACI)
Consensus Price Target: $691.92 (39.8% implied return)
Founded to commercialize SIMSCRIPT, CACI International (NYSE: CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts.
Why Does CACI Fall Short?
- 3.9 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Low returns on capital reflect management’s struggle to allocate funds effectively
CACI’s stock price of $494.79 implies a valuation ratio of 16.4x forward P/E. To fully understand why you should be careful with CACI, check out our full research report (it’s free).
Two Stocks to Watch:
Cadre (CDRE)
Consensus Price Target: $46.80 (60.1% implied return)
Originally known as Safariland, Cadre (NYSE: CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Why Does CDRE Stand Out?
- Impressive 11.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Market share is on track to rise over the next 12 months as its 17.6% projected revenue growth implies demand will accelerate from its two-year trend
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
Cadre is trading at $29.23 per share, or 1.7x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Maximus (MMS)
Consensus Price Target: $105 (76% implied return)
With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE: MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.
Why Are We Positive On MMS?
- Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Share repurchases over the last two years enabled its annual earnings per share growth of 21.2% to outpace its revenue gains
- Improving returns on capital reflect management’s ability to monetize investments
At $59.66 per share, Maximus trades at 6.6x 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
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.
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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.
