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1 of Wall Street’s Favorite Stock to Target This Week and 2 We Find Risky

BALY 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.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.

Two Stocks to Sell:

Bally's (BALY)

Consensus Price Target: $12.50 (34.7% implied return)

Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE: BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms.

Why Should You Sell BALY?

  1. Muted 2.9% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
  2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
  3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

At $9.28 per share, Bally's trades at 1.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BALY doesn’t pass our bar.

Amphastar Pharmaceuticals (AMPH)

Consensus Price Target: $32.20 (53.7% implied return)

Founded in 1996 and known for its expertise in complex drug formulations, Amphastar Pharmaceuticals (NASDAQ: AMPH) develops and manufactures technically challenging injectable and inhalation medications, including both generic and proprietary pharmaceutical products.

Why Are We Cautious About AMPH?

  1. Revenue base of $730.7 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
  2. Demand will likely fall over the next 12 months as Wall Street expects flat revenue

Amphastar Pharmaceuticals is trading at $20.95 per share, or 6.4x forward P/E. To fully understand why you should be careful with AMPH, check out our full research report (it’s free).

One Stock to Buy:

Inspire Medical Systems (INSP)

Consensus Price Target: $210.73 (69.2% implied return)

Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE: INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.

Why Should You Buy INSP?

  1. Measured rollout of new domestic medical centers communicates a gradual expansion strategy
  2. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 26.7% annually
  3. Free cash flow margin jumped by 48.2 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Inspire Medical Systems’s stock price of $124.54 implies a valuation ratio of 45.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.

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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