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1 of Wall Street’s Favorite Stock on Our Buy List and 2 We Turn Down

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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.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.

Two Stocks to Sell:

Mission Produce (AVO)

Consensus Price Target: $17.33 (45.8% implied return)

Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.

Why Should You Sell AVO?

  1. Modest revenue base of $1.43 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
  2. Estimated sales decline of 7.1% for the next 12 months implies a challenging demand environment
  3. Gross margin of 11.1% is below its competitors, leaving less money to invest in areas like marketing and production facilities

At $11.89 per share, Mission Produce trades at 17.8x forward P/E. Dive into our free research report to see why there are better opportunities than AVO.

West Pharmaceutical Services (WST)

Consensus Price Target: $317.17 (20.6% implied return)

Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE: WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.

Why Does WST Worry Us?

  1. Muted 1.6% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers
  2. Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 3.9 percentage points
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

West Pharmaceutical Services is trading at $262.95 per share, or 37.4x forward P/E. Read our free research report to see why you should think twice about including WST in your portfolio.

One Stock to Buy:

Amalgamated Financial (AMAL)

Consensus Price Target: $31.50 (16% implied return)

Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.

Why Should You Buy AMAL?

  1. Unique value proposition resonates with borrowers, as seen in its above-market 10% annual net interest income growth over the last five years
  2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 8% outpaced its revenue gains
  3. Balance sheet strength has increased this cycle as its 20.4% annual tangible book value per share growth over the last two years was exceptional

Amalgamated Financial’s stock price of $27.16 implies a valuation ratio of 1x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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