2 of Wall Street’s Favorite Stocks to Target This Week and 1 That Underwhelm

October 06, 2025 at 00:39 AM EDT

DAL 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. That said, here are two stocks likely to meet or exceed Wall Street’s lofty expectations and one where consensus estimates seem disconnected from reality.

One Stock to Sell:

Delta (DAL)

Consensus Price Target: $70.46 (22.6% implied return)

One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE: DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.

Why Do We Avoid DAL?

Performance surrounding its revenue passenger miles has lagged its peers
Estimated sales growth of 2.8% for the next 12 months implies demand will slow from its two-year trend
ROIC of 5.7% reflects management’s challenges in identifying attractive investment opportunities

Delta is trading at $57.45 per share, or 9.6x forward P/E. Read our free research report to see why you should think twice about including DAL in your portfolio.

Two Stocks to Watch:

Humana (HUM)

Consensus Price Target: $292.87 (3.3% implied return)

With over 80% of its revenue derived from federal government contracts, Humana (NYSE: HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.

Why Could HUM Be a Winner?

Products and services resonate with customers, evidenced by its respectable 11.8% annualized sales growth over the last five years
Unparalleled scale of $123.1 billion in revenue enables it to spread administrative costs across a larger membership base
Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

At $283.50 per share, Humana trades at 19.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Globalstar (GSAT)

Consensus Price Target: $52.50 (26.8% implied return)

Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ: GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.

Why Are We Fans of GSAT?

Annual revenue growth of 16.3% over the last two years was superb and indicates its market share increased during this cycle
Incremental sales significantly boosted profitability as its annual earnings per share growth of 55.5% over the last two years outstripped its revenue performance
GSAT is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety

Globalstar’s stock price of $41.39 implies a valuation ratio of 74.7x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

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 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-small-cap company Comfort Systems (+782% 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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