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1 of Wall Street’s Favorite Stock with Impressive Fundamentals and 2 We Ignore


Radek Strnad /
2026/02/18 11:38 pm EST

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 excitement appears well-founded and two where its enthusiasm might be excessive.

Two Stocks to Sell:

LiveRamp (RAMP)

Consensus Price Target: $37 (47.3% implied return)

Serving as the digital middleman in an increasingly privacy-conscious world, LiveRamp (NYSE:RAMP) provides technology that helps companies securely share and connect their customer data with trusted partners while maintaining privacy compliance.

Why Are We Cautious About RAMP?

  1. Customers were hesitant to make long-term commitments to its software as its 6.8% average ARR growth over the last year was sluggish
  2. Customers generally do not adopt complementary products as its 104% net revenue retention rate lags behind the industry standard
  3. Estimated sales growth of 9% for the next 12 months implies demand will slow from its two-year trend

LiveRamp’s stock price of $25.13 implies a valuation ratio of 1.8x forward price-to-sales. Read our free research report to see why you should think twice about including RAMP in your portfolio.

AMC Entertainment (AMC)

Consensus Price Target: $2.01 (60.2% implied return)

With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE:AMC) operates movie theaters primarily in the US and Europe.

Why Do We Steer Clear of AMC?

  1. Muted 14% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
  2. Cash-burning history makes us doubt the long-term viability of its business model
  3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

AMC Entertainment is trading at $1.26 per share, or 17.5x forward EV-to-EBITDA. To fully understand why you should be careful with AMC, check out our full research report (it’s free).

One Stock to Buy:

Magnite (MGNI)

Consensus Price Target: $26.57 (122% implied return)

Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ:MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.

Why Do We Love MGNI?

  1. Annual revenue growth of 30.2% over the past five years was outstanding, reflecting market share gains this cycle
  2. Strong free cash flow margin of 24.8% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
  3. Rising returns on capital show the company is starting to reap the benefits of its past investments

At $11.98 per share, Magnite trades at 11.8x forward P/E. Is now the right time to buy? Find out 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 9 Market-Beating Stocks. 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.