ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

2 of Wall Street’s Favorite Stocks on Our Watchlist and 1 We Turn Down

LW Cover Image

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.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here are two stocks likely to meet or exceed Wall Street’s lofty expectations and one where its enthusiasm might be excessive.

One Stock to Sell:

Lamb Weston (LW)

Consensus Price Target: $64.36 (17.6% implied return)

Best known for its Grown in Idaho brand, Lamb Weston (NYSE: LW) produces and distributes potato products such as frozen french fries and mashed potatoes.

Why Does LW Give Us Pause?

  1. Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
  2. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 6.2 percentage points
  3. Poor free cash flow margin of 0.8% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

At $54.73 per share, Lamb Weston trades at 15.9x forward P/E. Read our free research report to see why you should think twice about including LW in your portfolio.

Two Stocks to Watch:

KBR (KBR)

Consensus Price Target: $60.71 (18.5% implied return)

Known for projects like the construction of Guantanamo Bay, KBR provides professional services and technologies, specializing in engineering, construction, and government services sectors.

Why Does KBR Stand Out?

  1. Offerings and unique value proposition resonate with customers, as seen in its above-market 9.9% annual sales growth over the last two years
  2. Operating margin improvement of 6.3 percentage points over the last five years demonstrates its ability to scale efficiently
  3. Share repurchases over the last five years enabled its annual earnings per share growth of 16.6% to outpace its revenue gains

KBR’s stock price of $51.25 implies a valuation ratio of 13.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Lantheus (LNTH)

Consensus Price Target: $90.69 (68.3% implied return)

Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.

Why Do We Like LNTH?

  1. Annual revenue growth of 35.6% over the last five years was superb and indicates its market share increased during this cycle
  2. Free cash flow margin increased by 22.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
  3. Returns on capital are climbing as management makes more lucrative bets

Lantheus is trading at $53.90 per share, or 8x forward P/E. Is now a good time to buy? See for yourself in our in-depth 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 5 Growth Stocks for this month. 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

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.

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.