Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
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:
RH (RH)
Consensus Price Target: $166.41 (33.2% implied return)
Formerly known as Restoration Hardware, RH (NYSE: RH) is a specialty retailer that exclusively sells its own brand of high-end furniture and home decor.
Why Does RH Give Us Pause?
- Sales trends were unexciting over the last three years as its 2.7% annual growth was below the typical consumer retail company
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
- High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens
RH’s stock price of $124.90 implies a valuation ratio of 18.2x forward P/E. Read our free research report to see why you should think twice about including RH in your portfolio.
Two Stocks to Buy:
Monolithic Power Systems (MPWR)
Consensus Price Target: $1,840 (34.3% implied return)
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Why Do We Love MPWR?
- Market share has increased this cycle as its 25.8% annual revenue growth over the last five years was exceptional
- Earnings per share have massively outperformed its peers over the last five years, increasing by 27.5% annually
- ROIC punches in at 43.1%, illustrating management’s expertise in identifying profitable investments
Monolithic Power Systems is trading at $1,370 per share, or 41.7x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
EMCOR (EME)
Consensus Price Target: $1,033 (35.6% implied return)
Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services
Why Will EME Beat the Market?
- Annual revenue growth of 16.3% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Returns on capital are growing as management capitalizes on its market opportunities
At $762.15 per share, EMCOR trades at 21.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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.
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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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
