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 are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where analysts may be overlooking some important risks.

One Stock to Sell:

GoodRx (GDRX)

Consensus Price Target: $5.37 (30% implied return)

Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx (NASDAQ: GDRX) operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes.

Why Is GDRX Risky?

1. Customer additions have disappointed over the past two years, indicating the company’s value proposition may not be resonating
2. Smaller revenue base of $799.9 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Negative returns on capital show that some of its growth strategies have backfired

GoodRx is trading at $4.13 per share, or 9.8x forward P/E. If you’re considering GDRX for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Abercrombie and Fitch (ANF)

Consensus Price Target: $114.63 (19.4% implied return)

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

Why Could ANF Be a Winner?

1. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 13.5% over the past two years
2. Differentiated product assortment leads to a best-in-class gross margin of 63.6%
3. Earnings per share grew by 48.1% annually over the last six years, massively outpacing its peers

Abercrombie and Fitch’s stock price of $96 implies a valuation ratio of 9.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Badger Meter (BMI)

Consensus Price Target: $237.43 (34.1% implied return)

The developer of the world’s first frost-proof water meter in 1905, Badger Meter (NYSE: BMI) provides water control and measure equipment to various industries.

Why Do We Love BMI?

1. Annual revenue growth of 17.8% over the last two years was superb and indicates its market share increased during this cycle
2. Additional sales over the last two years increased its profitability as the 32.1% annual growth in its earnings per share outpaced its revenue
3. Robust free cash flow margin of 15.2% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute

At $177.04 per share, Badger Meter trades at 34x 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

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 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% 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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