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.
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:
Jamf (JAMF)
Consensus Price Target: $21.70 (69.9% implied return)
Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ: JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.
Why Are We Cautious About JAMF?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 9% underwhelmed
- Poor expense management has led to operating losses
- Poor free cash flow margin of 3.5% for the last year limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $10.77 per share, Jamf trades at 2.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than JAMF.
Two Stocks to Watch:
Autodesk (ADSK)
Consensus Price Target: $335.21 (25.9% implied return)
Founded in 1982 by John Walker and growing into one of the industry's behemoths, Autodesk (NASDAQ: ADSK) makes computer-aided design (CAD) software for engineering, construction, and architecture companies.
Why Do We Like ADSK?
- Billings growth has averaged 14.7% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Superior software functionality and low servicing costs are reflected in its best-in-class gross margin of 92%
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Autodesk is trading at $255.03 per share, or 8.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Nextracker (NXT)
Consensus Price Target: $51.87 (36.9% implied return)
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dabhi solar farm project, Nextracker (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Are We Bullish on NXT?
- Sales pipeline is in good shape as its backlog averaged 56.1% growth over the past two years
- Free cash flow margin increased by 13.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are climbing as management makes more lucrative bets
Nextracker’s stock price of $39.63 implies a valuation ratio of 12.4x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.
