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 likely to meet or exceed Wall Street’s lofty expectations and one where consensus estimates seem disconnected from reality.
One Stock to Sell:
Affiliated Managers Group (AMG)
Consensus Price Target: $288.71 (21.9% implied return)
Using a partnership approach that preserves entrepreneurial culture at its portfolio companies, Affiliated Managers Group (NYSE: AMG) is an investment firm that acquires stakes in boutique asset management companies while allowing them to maintain operational independence.
Why Do We Think Twice About AMG?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
- Earnings per share lagged its peers over the last two years as they only grew by 4.4% annually
Affiliated Managers Group’s stock price of $236.91 implies a valuation ratio of 8.8x forward P/E. To fully understand why you should be careful with AMG, check out our full research report (it’s free for active Edge members).
Two Stocks to Watch:
Freshworks (FRSH)
Consensus Price Target: $19.64 (69.3% implied return)
Starting as a customer service solution before expanding into a comprehensive software suite, Freshworks (NASDAQ: FRSH) provides AI-powered software-as-a-service solutions that help companies manage customer service, IT support, sales, and marketing functions.
Why Are We Positive On FRSH?
- Annual revenue growth of 30.5% over the last five years was superb and indicates its market share is rising
- Ability to secure long-term commitments with customers is evident in its 20.9% ARR growth over the last year
- Prominent and differentiated software culminates in a stellar gross margin of 84.6%
Freshworks is trading at $11.60 per share, or 3.8x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Brinker International (EAT)
Consensus Price Target: $173.67 (31.5% implied return)
Founded by Norman Brinker in Dallas, Brinker International (NYSE: EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Why Does EAT Stand Out?
- Same-store sales growth averaged 13.3% over the past two years, showing it’s bringing new and repeat diners into its restaurants
- Operating margin expanded by 4.3 percentage points over the last year as it scaled and became more efficient
- Free cash flow margin increased by 2.6 percentage points over the last year, giving the company more capital to invest or return to shareholders
At $132.05 per share, Brinker International trades at 12.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
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 6 Stocks for this week. 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
