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 its enthusiasm might be excessive.
One Stock to Sell:
AT&T (T)
Consensus Price Target: $30.30 (34.4% implied return)
Founded by Alexander Graham Bell, AT&T (NYSE: T) is a multinational telecomm conglomerate providing a range of communications and internet services.
Why Do We Think T Will Underperform?
- Annual sales declines of 1.3% for the past five years show its products and services struggled to connect with the market
- Sales were less profitable over the last five years as its earnings per share fell by 7.5% annually, worse than its revenue declines
- Forecasted free cash flow margin suggests the company will fail to improve its cash conversion over the next year
AT&T’s stock price of $22.55 implies a valuation ratio of 9.7x forward P/E. To fully understand why you should be careful with T, check out our full research report (it’s free).
Two Stocks to Watch:
Zoetis (ZTS)
Consensus Price Target: $124.59 (58.6% implied return)
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE: ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Why Does ZTS Stand Out?
- Average constant currency growth of 8.7% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Zoetis is trading at $78.58 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.
Chord Energy (CHRD)
Consensus Price Target: $173.44 (25.5% implied return)
Holding the largest acreage position in the Williston Basin, Chord Energy (NASDAQ: CHRD) drills for and produces crude oil, natural gas liquids, and natural gas in North Dakota's Williston Basin.
Why Is CHRD a Top Pick?
- Annual revenue growth of 21.8% over the past ten years was outstanding, reflecting market share gains this cycle
- Economies of scale give it some operating leverage when demand rises
- CHRD is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $138.15 per share, Chord Energy trades at 6.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
