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 are two stocks where Wall Street’s excitement appears well-founded and one where consensus estimates seem disconnected from reality.
One stock to sell:
Perella Weinberg (PWP)
Consensus price target: $21.25 (46.6% implied return)
Founded in 2006 by veteran investment bankers Joseph Perella and Peter Weinberg during a wave of boutique advisory firm launches, Perella Weinberg Partners (NASDAQ: PWP) is a global independent advisory firm that provides strategic and financial advice to corporations, financial sponsors, and government institutions.
Why Do We Avoid PWP?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Sales over the last five years were less profitable as its earnings per share fell by 8.4% annually while its revenue was flat
- Tangible book value per share tumbled by 197% annually over the last five years, showing financials sector trends are working against it during this cycle
Perella Weinberg’s stock price of $14.50 implies a valuation ratio of 10.7x forward P/E. Read our free research report to see why you should think twice about including PWP in your portfolio.
Two stocks to buy:
Datadog (DDOG)
Consensus price target: $295.55 (57% implied return)
Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ: DDOG) provides a software platform that helps organizations monitor and secure their cloud applications, infrastructure, and services.
Why Do We Love DDOG?
- Customers view its software as mission-critical to their operations as its ARR has averaged 33% growth over the last year
- Estimated revenue growth of 21.9% for the next 12 months implies its momentum over the last two years will continue
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Datadog is trading at $188.30 per share, or 15.9x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Nextpower (NXT)
Consensus price target: $128.29 (21.1% implied return)
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextpower (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Should You Buy NXT?
- Annual revenue growth of 17% over the past two years was outstanding, reflecting market share gains this cycle
- Free cash flow margin expanded by 17.8 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Rising returns on capital show management is finding more attractive investment opportunities
At $105.94 per share, Nextpower trades at 19.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks we like even more
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
