1 of Wall Street’s Favorite Stock Worth Your Attention and 2 We Find Risky

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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here is one stock where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

Bentley Systems (BSY)

Consensus Price Target: $47.36 (33.4% implied return)

Pioneering the concept of "digital twins" for infrastructure projects long before it became an industry buzzword, Bentley Systems (NASDAQ:BSY) provides software solutions that help engineers design, build, and operate infrastructure projects across sectors including roads, bridges, utilities, mining, and industrial facilities.

Why Are We Hesitant About BSY?

1. Average ARR growth of 12.3% over the last year has disappointed, suggesting it’s had a hard time winning long-term deals and renewals
2. Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
3. Projected 3.1 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position

Bentley Systems’s stock price of $35.50 implies a valuation ratio of 6.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BSY.

CoStar (CSGP)

Consensus Price Target: $61.42 (53.1% implied return)

With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ:CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K.

Why Do We Think Twice About CSGP?

1. Earnings per share fell by 2.7% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
2. 13.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

CoStar is trading at $40.11 per share, or 30.4x forward P/E. To fully understand why you should be careful with CSGP, check out our full research report (it’s free).

One Stock to Buy:

Tetra Tech (TTEK)

Consensus Price Target: $41.17 (29.7% implied return)

With a 50-year legacy of "Leading with Science" and operations on all seven continents, Tetra Tech (NASDAQ:TTEK) provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure for government and commercial clients worldwide.

Why Will TTEK Beat the Market?

1. Annual revenue growth of 13.8% over the past five years was outstanding, reflecting market share gains this cycle
2. Share buybacks catapulted its annual earnings per share growth to 24.3%, which outperformed its revenue gains over the last two years
3. Robust free cash flow margin of 9.6% gives it many options for capital deployment

At $31.74 per share, Tetra Tech trades at 20.2x 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 meeting 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 (+1,326% between June 2020 and June 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.