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. That said, here are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where analysts may be overlooking some important risks.
One Stock to Sell:
Inspired (INSE)
Consensus Price Target: $12 (43% implied return)
Specializing in digital casino gaming, Inspired (NASDAQ: INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.
Why Does INSE Fall Short?
- 1.9% annual revenue growth over the last two years was slower than its consumer discretionary peers
- Projected sales growth of 2.3% for the next 12 months suggests sluggish demand
- Low free cash flow margin of 3.5% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Inspired is trading at $8.39 per share, or 2.2x forward EV-to-EBITDA. To fully understand why you should be careful with INSE, check out our full research report (it’s free).
Two Stocks to Watch:
Zoetis (ZTS)
Consensus Price Target: $195.04 (22.5% implied return)
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE: ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Why Is ZTS on Our Radar?
- Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 9.1% over the past two years
- Robust free cash flow margin of 21.4% gives it many options for capital deployment
- ROIC punches in at 28.8%, illustrating management’s expertise in identifying profitable investments
Zoetis’s stock price of $159.19 implies a valuation ratio of 25.8x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
EXL (EXLS)
Consensus Price Target: $54.37 (21.9% implied return)
Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ: EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.
Why Do We Love EXLS?
- Market share has increased this cycle as its 13.8% annual revenue growth over the last five years was exceptional
- Share repurchases over the last five years enabled its annual earnings per share growth of 22.8% to outpace its revenue gains
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $44.60 per share, EXL trades at 23.1x forward P/E. Is now a good time to buy? Find out in our full 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 Strong Momentum Stocks for this week. 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 Nvidia (+1,545% 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
