2 of Wall Street’s Favorite Stocks to Consider Right Now and 1 That Underwhelm

Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.

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 excitement appears well-founded and one where its enthusiasm might be excessive.

One Stock to Sell:

Amentum (AMTM)

Consensus Price Target: $36.55 (32.9% implied return)

With operations spanning approximately 80 countries and a workforce of specialized engineers and technical experts, Amentum Holdings (NYSE:AMTM) provides advanced engineering and technology solutions to U.S. government agencies, allied governments, and commercial enterprises across defense, energy, and space sectors.

Why Are We Cautious About AMTM?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 2.6% for the last two years
2. Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend
3. Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 41.3% annually

At $27.50 per share, Amentum trades at 11.1x forward P/E. If you’re considering AMTM for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

EXL (EXLS)

Consensus Price Target: $41.71 (31.9% implied return)

Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ:EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.

Why Do We Love EXLS?

1. Impressive 16.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 22.6% exceeded its revenue gains over the last five years
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

EXL is trading at $31.58 per share, or 14.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

California Resources (CRC)

Consensus Price Target: $81.50 (29.8% implied return)

Operating some of California's most productive oil fields including Elk Hills and Belridge, California Resources (NYSE:CRC) explores for and produces crude oil, natural gas, and natural gas liquids from fields across California.

Why Are We Positive On CRC?

1. Annual revenue growth of 16.9% over the last five years was superb and indicates its market share increased during this cycle
2. Attractive asset base result in a top-tier gross margin of 57.1%
3. Strong free cash flow margin of 14.3% enables it to reinvest or return capital consistently

California Resources’s stock price of $62.77 implies a valuation ratio of 13.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.