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. Keeping that in mind, here is one stock where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Envista (NVST)
Consensus Price Target: $29.85 (28.9% implied return)
Uniting more than 30 trusted brands including Nobel Biocare, Ormco, and DEXIS under one corporate umbrella, Envista Holdings (NYSE: NVST) is a global dental products company that provides equipment, consumables, and specialized technologies for dental professionals.
Why Should You Dump NVST?
- Sales trends were unexciting over the last two years as its 4.7% annual growth was below the typical healthcare company
- Negative returns on capital show that some of its growth strategies have backfired, and its falling returns suggest its earlier profit pools are drying up
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Envista’s stock price of $23.16 implies a valuation ratio of 15.6x forward P/E. Check out our free in-depth research report to learn more about why NVST doesn’t pass our bar.
FB Financial (FBK)
Consensus Price Target: $64.43 (21.3% implied return)
Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE: FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.
Why Does FBK Fall Short?
- Muted 1.4% annual revenue growth over the last five years shows its demand lagged behind its banking peers
- Earnings per share fell by 1.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Capital trends were unexciting over the last two years as its 8.8% annual tangible book value per share growth was below the typical banking firm
At $53.13 per share, FB Financial trades at 1.3x forward P/B. Read our free research report to see why you should think twice about including FBK in your portfolio.
One Stock to Buy:
Expand Energy (EXE)
Consensus Price Target: $130.04 (38.8% implied return)
Rebranded from Chesapeake Energy in 2024 after emerging from bankruptcy, Expand Energy (NASDAQ: EXE) produces natural gas, oil, and natural gas liquids from underground shale formations in Louisiana, Pennsylvania, Ohio, and West Virginia.
Why Should You Buy EXE?
- Annual revenue growth of 23.8% over the past five years was outstanding, reflecting market share gains this cycle
- Massive revenue base of $12.96 billion makes it a household name that influences purchasing decisions
- EBITDA margin expanded by 43.6 percentage points over the last five years as it scaled and became more efficient
Expand Energy is trading at $93.72 per share, or 11.3x 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
