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. Keeping that in mind, here are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where its enthusiasm might be excessive.

One Stock to Sell:

Herc (HRI)

Consensus Price Target: $170.09 (23% implied return)

Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE: HRI) provides equipment rental and related services to a wide range of industries.

Why Are We Wary of HRI?

1. Efficiency has decreased over the last five years as its operating margin fell by 7.2 percentage points
2. Earnings per share fell by 28% annually over the last two years while its revenue grew, partly because it diluted shareholders
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Herc is trading at $138.30 per share, or 20.4x forward P/E. Check out our free in-depth research report to learn more about why HRI doesn’t pass our bar.

Two Stocks to Watch:

Piper Sandler (PIPR)

Consensus Price Target: $95.13 (33.5% implied return)

Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE: PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.

Why Do We Like PIPR?

1. Market share has increased this cycle as its 19.6% annual revenue growth over the last two years was exceptional
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 34.8% over the last two years outstripped its revenue performance
3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

Piper Sandler’s stock price of $71.25 implies a valuation ratio of 15.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Crescent Energy (CRGY)

Consensus Price Target: $17.50 (80.6% implied return)

Controlling over 1.4 million net acres across proven U.S. basins, Crescent Energy (NYSE: CRGY) extracts oil and natural gas from underground reservoirs in Texas and the Rocky Mountains.

Why Is CRGY a Good Business?

1. Annual revenue growth of 41.5% over the last five years was superb and indicates its market share increased during this cycle
2. Excellent production efficiency results in a stellar gross margin of 59%
3. Strong free cash flow margin of 14.8% enables it to reinvest or return capital consistently

At $9.69 per share, Crescent Energy trades at 3.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

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.