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. That said, here is one stock where Wall Street’s excitement appears well-founded and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Asure Software (ASUR)
Consensus Price Target: $13.39 (63.7% implied return)
Operating in the often-overlooked smaller metropolitan markets where HR expertise can be scarce, Asure Software (NASDAQ: ASUR) provides cloud-based human capital management software and services that help small and medium-sized businesses manage payroll, taxes, time tracking, and HR compliance.
Why Do We Avoid ASUR?
- Muted 4.4% annual revenue growth over the last two years shows its demand lagged behind its software peers
- Offerings struggled to generate meaningful interest as its average billings growth of 7.1% over the last year did not impress
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 3.2 percentage points
Asure Software’s stock price of $8.18 implies a valuation ratio of 1.5x forward price-to-sales. To fully understand why you should be careful with ASUR, check out our full research report (it’s free).
Danaher (DHR)
Consensus Price Target: $243.43 (27.6% implied return)
Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE: DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.
Why Does DHR Worry Us?
- Annual sales declines of 2.9% for the past two years show its products and services struggled to connect with the market during this cycle
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Free cash flow margin dropped by 7.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up
At $190.80 per share, Danaher trades at 23.4x forward P/E. Dive into our free research report to see why there are better opportunities than DHR.
One Stock to Watch:
Zoetis (ZTS)
Consensus Price Target: $190.09 (33.2% 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 Could ZTS Be a Winner?
- Average constant currency growth of 8.6% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Zoetis is trading at $142.70 per share, or 22x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
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 Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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
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