2 of Wall Street’s Favorite Stocks with Solid Fundamentals and 1 That Underwhelm

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 likely to meet or exceed Wall Street’s lofty expectations and one where analysts may be overlooking some important risks.

One Stock to Sell:

STERIS (STE)

Consensus Price Target: $256.86 (21.4% implied return)

With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE:STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments.

Why Does STE Worry Us?

1. 7.5% annual revenue growth over the last two years was slower than its healthcare peers
2. Low returns on capital reflect management’s struggle to allocate funds effectively

STERIS’s stock price of $211.50 implies a valuation ratio of 19.3x forward P/E. Dive into our free research report to see why there are better opportunities than STE.

Two Stocks to Watch:

Intuit (INTU)

Consensus Price Target: $502.02 (51.6% implied return)

Originally named after its founding product "Intuitive for the first-time user," Intuit (NASDAQ:INTU) provides financial management software and services including TurboTax, QuickBooks, Credit Karma, and Mailchimp to help consumers and small businesses manage their finances.

Why Are We Positive on INTU?

1. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
2. Excellent operating margin of 27.5% highlights the efficiency of its business model, and its profits increased over the last year as it scaled
3. Strong free cash flow margin of 36.9% enables it to reinvest or return capital consistently

Intuit is trading at $331.22 per share, or 3.7x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

Toast (TOST)

Consensus Price Target: $33.96 (30.2% implied return)

Born from the frustrations of three friends waiting too long for their restaurant bill, Toast (NYSE:TOST) provides a cloud-based digital technology platform with software, payment processing, and hardware solutions built specifically for restaurants.

Why Are We Fans of TOST?

1. Customers view its software as mission-critical to their operations as its ARR has averaged 28% growth over the last year
2. Estimated revenue growth of 19.8% for the next 12 months implies its momentum over the last two years will continue

At $26.08 per share, Toast trades at 1.9x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive 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.

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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.