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 is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Align Technology (ALGN)
Consensus Price Target: $208.60 (41.5% implied return)
Pioneering an alternative to traditional metal braces with nearly invisible plastic aligners, Align Technology (NASDAQ: ALGN) designs and manufactures Invisalign clear aligners, iTero intraoral scanners, and dental CAD/CAM software for orthodontic and restorative treatments.
Why Are We Wary of ALGN?
- Sales trends were unexciting over the last two years as its 2.5% annual growth was below the typical healthcare company
- Earnings per share lagged its peers over the last five years as they only grew by 1.4% annually
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Align Technology is trading at $147.38 per share, or 12.5x forward P/E. Read our free research report to see why you should think twice about including ALGN in your portfolio.
Triumph Financial (TFIN)
Consensus Price Target: $85.80 (37.6% implied return)
Originally focused on traditional banking before pivoting to serve the transportation sector, Triumph Financial (NYSE: TFIN) provides specialized financial services to the trucking industry, including payments processing, factoring, banking, and data intelligence solutions.
Why Is TFIN Risky?
- Net interest income trends were unexciting over the last five years as its 1.8% annual growth was below the typical banking firm
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 22.2% annually while its revenue grew
- Insufficient tier one capital ratio of 9.9% leaves little margin for error in meeting regulatory liquidity requirements
Triumph Financial’s stock price of $62.35 implies a valuation ratio of 1.6x forward P/B. Check out our free in-depth research report to learn more about why TFIN doesn’t pass our bar.
One Stock to Buy:
Woodward (WWD)
Consensus Price Target: $440.67 (35.5% implied return)
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ: WWD) designs, services, and manufactures energy control products and optimization solutions.
Why Should You Buy WWD?
- Market share has increased this cycle as its 13.7% annual revenue growth over the last five years was exceptional
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Share buybacks catapulted its annual earnings per share growth to 22.5%, which outperformed its revenue gains over the last two years
At $325.14 per share, Woodward trades at 31.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
