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 likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Bandwidth (BAND)
Consensus Price Target: $22.75 (75.5% implied return)
Powering communications for tech giants like Microsoft, Google, and Zoom, Bandwidth (NASDAQ:BAND) provides cloud-based communications software and APIs that enable businesses to embed voice, messaging, and emergency services into their applications and platforms.
Why Is BAND Not Exciting?
- Revenue increased by 12.9% annually over the last two years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
- Sky-high servicing costs result in an inferior gross margin of 38.8% that must be offset through increased usage
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
Bandwidth is trading at $12.97 per share, or 0.5x forward price-to-sales. To fully understand why you should be careful with BAND, check out our full research report (it’s free).
Gray Television (GTN)
Consensus Price Target: $6.40 (36.9% implied return)
Specializing in local media coverage, Gray Television (NYSE:GTN) is a broadcast company supplying digital media to various markets in the United States.
Why Should You Dump GTN?
- Lackluster 9.1% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $4.68 per share, Gray Television trades at 4.6x forward P/E. If you’re considering GTN for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Broadcom (AVGO)
Consensus Price Target: $456.59 (40.5% implied return)
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ:AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Why Are We Backing AVGO?
- Annual revenue growth of 33.6% over the last two years was superb and indicates its market share increased during this cycle
- Offerings are mission-critical for businesses and result in a best-in-class gross margin of 76.4%
- AVGO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Broadcom’s stock price of $324.90 implies a valuation ratio of 32.2x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 5 Strong Momentum 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.