2 of Wall Street’s Favorite Stocks Worth Investigating and 1 We Turn Down
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here are two stocks likely to meet or exceed Wall Street’s lofty expectations and one where its enthusiasm might be excessive.
One Stock to Sell:
Columbus McKinnon (CMCO)
Consensus Price Target: $26 (50.7% implied return)
With 19 different brands across the globe, Columbus McKinnon (NASDAQ:CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.
Why Does CMCO Give Us Pause?
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 14.7% annually
- Free cash flow margin dropped by 11.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Columbus McKinnon is trading at $17.26 per share, or 8.8x forward P/E. Dive into our free research report to see why there are better opportunities than CMCO.
Two Stocks to Watch:
BWX (BWXT)
Consensus Price Target: $232.31 (43.8% implied return)
Contributing components and materials to the famous Manhattan Project in the 1940s, BWX (NYSE:BWXT) is a manufacturer and service provider of nuclear components and fuel for government and commercial industries.
Why Are We Bullish on BWXT?
- Market share has increased this cycle as its 16.2% annual revenue growth over the last two years was exceptional
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Free cash flow margin increased by 6.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
BWX’s stock price of $161.60 implies a valuation ratio of 30.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Cigna (CI)
Consensus Price Target: $341.42 (21.3% implied return)
With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE:CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans.
Why Do We Like CI?
- Annual revenue growth of 13.8% over the last two years beat the sector average and underscores the unique value of its offerings
- Dominant market position is represented by its $282.1 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
- Earnings growth has easily exceeded the peer group average over the last five years as its EPS has compounded at 12% annually
At $281.50 per share, Cigna trades at 8.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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.