2 of Wall Street’s Favorite Stocks with Competitive Advantages and 1 That Underwhelm

NVDA Cover Image

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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. 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:

AMC Entertainment (AMC)

Consensus Price Target: $3.29 (35.4% implied return)

With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE: AMC) operates movie theaters primarily in the US and Europe.

Why Should You Sell AMC?

  1. Annual revenue growth of 1.8% over the last two years was below our standards for the consumer discretionary sector
  2. Cash burn makes us question whether it can achieve sustainable long-term growth
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $2.43 per share, AMC Entertainment trades at 1.9x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than AMC.

Two Stocks to Watch:

Nvidia (NVDA)

Consensus Price Target: $229.67 (20.8% implied return)

Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ: NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.

Why Is NVDA a Top Pick?

  1. Impressive 125% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 79.5% exceeded its revenue gains over the last five years
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business

Nvidia’s stock price of $190.20 implies a valuation ratio of 32.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Byline Bancorp (BY)

Consensus Price Target: $32.60 (19.6% implied return)

Ranking as the fifth most active Small Business Administration lender in the country, Byline Bancorp (NYSE: BY) is a Chicago-based bank that provides banking services to small and medium-sized businesses, commercial real estate developers, and consumers.

Why Are We Positive On BY?

  1. Annual net interest income growth of 12.3% over the last five years was superb and indicates its market share increased during this cycle
  2. Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 21.8% outpaced its revenue gains
  3. Impressive 17.5% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle

Byline Bancorp is trading at $27.26 per share, or 1x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as ServiceNow (+178% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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