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. That said, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Byrna (BYRN)
Consensus Price Target: $35.50 (142% implied return)
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ:BYRN) is a provider of non-lethal weapons.
Why Does BYRN Give Us Pause?
- Poor expense management has led to an operating margin of -0.1% that is below the industry average
- Cash-burning history makes us doubt the long-term viability of its business model
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
At $14.65 per share, Byrna trades at 30.7x forward P/E. If you’re considering BYRN for your portfolio, see our FREE research report to learn more.
ICU Medical (ICUI)
Consensus Price Target: $180.83 (18% implied return)
Founded in 1984 and named for its initial focus on intensive care units, ICU Medical (NASDAQ:ICUI) develops and manufactures medical products for infusion therapy, vascular access, and vital care applications used in hospitals and other healthcare settings.
Why Should You Dump ICUI?
- Sales trends were unexciting over the last two years as its 2.1% annual growth was below the typical healthcare company
- Forecasted revenue decline of 7.7% for the upcoming 12 months implies demand will fall off a cliff
- Free cash flow margin dropped by 11.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up
ICU Medical’s stock price of $153.20 implies a valuation ratio of 20.4x forward P/E. Check out our free in-depth research report to learn more about why ICUI doesn’t pass our bar.
One Stock to Buy:
ServiceNow (NOW)
Consensus Price Target: $189.97 (77.2% implied return)
Built on a single code base that processes over 4 billion workflow transactions daily, ServiceNow (NYSE:NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
Why Should You Buy NOW?
- Customers view its software as mission-critical to their operations as its ARR has averaged 21% growth over the last year
- Highly efficient business model is illustrated by its impressive 13.7% operating margin, and its operating leverage amplified its profits over the last year
- Robust free cash flow margin of 34.9% gives it many options for capital deployment
ServiceNow is trading at $107.20 per share, or 6.8x forward price-to-sales. Is now a good time to buy? Find out 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 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.