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 analysts may be overlooking some important risks.
One Stock to Sell:
MillerKnoll (MLKN)
Consensus Price Target: $32 (62.6% implied return)
Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ:MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide.
Why Does MLKN Fall Short?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Earnings per share fell by 8.4% annually over the last five years while its revenue grew, partly because it diluted shareholders
- Low free cash flow margin of 2.7% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
At $19.69 per share, MillerKnoll trades at 9.5x forward P/E. To fully understand why you should be careful with MLKN, check out our full research report (it’s free).
Two Stocks to Watch:
AppLovin (APP)
Consensus Price Target: $741.08 (37.9% implied return)
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
Why Are We Bullish on APP?
- Impressive 30.9% annual revenue growth over the last two years indicates it’s winning market share
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Robust free cash flow margin of 64.5% gives it many options for capital deployment
AppLovin is trading at $537.56 per share, or 24.9x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Match Group (MTCH)
Consensus Price Target: $37.59 (17.2% implied return)
Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ:MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Why Does MTCH Stand Out?
- 7.9% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
- Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 35.7%
- MTCH 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
Match Group’s stock price of $32.06 implies a valuation ratio of 8.2x forward EV/EBITDA. Is now the time to initiate a position? See for yourself 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 6 Stocks for this week. 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.