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:
Repligen (RGEN)
Consensus Price Target: $190.89 (39.2% implied return)
With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ: RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.
Why Is RGEN Risky?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 17.8 percentage points
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Repligen’s stock price of $137.13 implies a valuation ratio of 71.7x forward P/E. Check out our free in-depth research report to learn more about why RGEN doesn’t pass our bar.
Two Stocks to Watch:
Ares (ARES)
Consensus Price Target: $177.29 (36.7% implied return)
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE: ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
Why Are We Bullish on ARES?
- Annual revenue growth of 21.4% over the last five years was superb and indicates its market share increased during this cycle
- Earnings per share grew by 20.7% annually over the last five years, comfortably beating the peer group average
At $129.71 per share, Ares trades at 20.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
The Bancorp (TBBK)
Consensus Price Target: $75 (29.7% implied return)
Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ: TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.
Why Are We Fans of TBBK?
- Annual net interest income growth of 14% over the last five years was superb and indicates its market share increased during this cycle
- Share repurchases over the last five years enabled its annual earnings per share growth of 28.9% to outpace its revenue gains
- Capital generation for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust tangible book value per share growth of 127%
The Bancorp is trading at $57.81 per share, or 3.1x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
