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 are two stocks where Wall Street’s excitement appears well-founded and one where analysts may be overlooking some important risks.
One Stock to Sell:
Xerox (XRX)
Consensus Price Target: $4.50 (16.9% implied return)
Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ: XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe.
Why Are We Out on XRX?
- Sales tumbled by 4.9% annually over the last five years, showing market trends are working against its favor during this cycle
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- High net-debt-to-EBITDA ratio of 8× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Xerox is trading at $3.85 per share, or 2.5x forward P/E. If you’re considering XRX for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
ServiceNow (NOW)
Consensus Price Target: $1,143 (25.6% implied return)
Built on a single code base that processes over 4 billion workflow transactions daily, ServiceNow (NYSE: NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
Why Should You Buy NOW?
- Demand is healthy as its current remaining performance obligations (cRPO) have averaged 22.9% growth over the last year, showing it’s securing new contracts for services yet to be fulfilled
- Highly efficient business model is illustrated by its impressive 13.3% operating margin, and its operating leverage amplified its profits over the last year
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $909.51 per share, ServiceNow trades at 13.3x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
BrightSpring Health Services (BTSG)
Consensus Price Target: $28.71 (21.8% implied return)
Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.
Why Could BTSG Be a Winner?
- Market share has increased this cycle as its 21.3% annual revenue growth over the last two years was exceptional
- Estimated revenue growth of 10.6% for the next 12 months implies its momentum over the last two years will continue
- Earnings per share grew by 26.3% annually over the last four years, massively outpacing its peers
BrightSpring Health Services’s stock price of $23.57 implies a valuation ratio of 24.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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
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