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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here is one stock where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

nLIGHT (LASR)

Consensus Price Target: $41.50 (14.1% implied return)

Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQ: LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors.

Why Is LASR Risky?

1. Sales trends were unexciting over the last five years as its 2.6% annual growth was below the typical industrials company
2. 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
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

nLIGHT is trading at $36.37 per share, or 128.7x forward P/E. If you’re considering LASR for your portfolio, see our FREE research report to learn more.

Mister Car Wash (MCW)

Consensus Price Target: $7.48 (43% implied return)

Formerly known as Hotshine Holdings, Mister Car Wash (NYSE: MCW) offers car washes across the United States through its conveyorized service.

Why Do We Steer Clear of MCW?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its stores
2. Improving returns on capital suggest management is identifying more profitable investments
3. 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $5.24 per share, Mister Car Wash trades at 11.4x forward P/E. To fully understand why you should be careful with MCW, check out our full research report (it’s free for active Edge members).

One Stock to Watch:

Toast (TOST)

Consensus Price Target: $47.42 (34.8% implied return)

Born from the frustrations of three friends waiting too long for their restaurant bill, Toast (NYSE: TOST) provides a cloud-based digital technology platform with software, payment processing, and hardware solutions built specifically for restaurants.

Why Do We Like TOST?

1. Ability to secure long-term commitments with customers is evident in its 31.3% ARR growth over the last year
2. Forecasted revenue growth of 21.1% for the next 12 months indicates its momentum over the last two years is sustainable

Toast’s stock price of $35.18 implies a valuation ratio of 3x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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