
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 positive outlook is supported by strong fundamentals and one where its enthusiasm might be excessive.
One Stock to Sell:
Genesis Energy (GEL)
Consensus Price Target: $18.67 (19.9% implied return)
Operating a 64% stake in the Poseidon Pipeline, one of the Gulf of Mexico's largest crude oil pipelines, Genesis Energy (NYSE:GEL) provides midstream services like pipeline transportation, storage, and processing for crude oil and natural gas producers and refiners.
Why Do We Avoid GEL?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
- Gross margin of 25.8% is below its competitors, leaving less money to invest in exploration and production
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Genesis Energy’s stock price of $15.57 implies a valuation ratio of 8x forward EV-to-EBITDA. To fully understand why you should be careful with GEL, check out our full research report (it’s free).
Two Stocks to Buy:
Broadridge (BR)
Consensus Price Target: $211.38 (22.6% implied return)
Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.
Why Will BR Outperform?
- Solid 8.4% annual revenue growth over the last five years indicates its offerings solve complex business issues
- Free cash flow margin grew by 10 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are growing as management capitalizes on its market opportunities
At $172.46 per share, Broadridge trades at 15.8x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Chord Energy (CHRD)
Consensus Price Target: $162.71 (19% implied return)
Holding the largest acreage position in the Williston Basin, Chord Energy (NASDAQ:CHRD) drills for and produces crude oil, natural gas liquids, and natural gas in North Dakota's Williston Basin.
Why Do We Love CHRD?
- Annual revenue growth of 24.8% over the last ten years was superb and indicates its market share increased during this cycle
- Scale advantages are evident in its $6.32 billion revenue base, which provides operating leverage when demand is strong
- CHRD is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Chord Energy is trading at $136.75 per share, or 8.8x 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
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.
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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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.