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:
Carnival (CCL)
Consensus Price Target: $35.84 (24.4% implied return)
Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE: CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.
Why Are We Wary of CCL?
- Performance surrounding its passenger cruise days has lagged its peers
- Estimated sales growth of 5.1% for the next 12 months implies demand will slow from its two-year trend
- Negative returns on capital show that some of its growth strategies have backfired
Carnival is trading at $28.80 per share, or 12.1x forward P/E. If you’re considering CCL for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Gorman-Rupp (GRC)
Consensus Price Target: $59 (31.2% implied return)
Powering fluid dynamics since 1934, Gorman-Rupp (NYSE: GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems.
Why Does GRC Stand Out?
- Annual revenue growth of 13.5% over the past five years was outstanding, reflecting market share gains this cycle
- Sales pipeline is in good shape as its backlog averaged 12.7% growth over the past two years
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 33% annually
Gorman-Rupp’s stock price of $44.97 implies a valuation ratio of 20.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
RB Global (RBA)
Consensus Price Target: $122.50 (23.5% implied return)
Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE: RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.
Why Are We Backing RBA?
- Market share has increased this cycle as its 33.6% annual revenue growth over the last two years was exceptional
- Earnings per share grew by 19.6% annually over the last five years and trumped its peers
- Robust free cash flow margin of 15.2% gives it many options for capital deployment
At $99.22 per share, RB Global trades at 24.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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 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-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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