Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
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 likely to meet or exceed Wall Street’s lofty expectations and one where its enthusiasm might be excessive.
One Stock to Sell:
Cadre (CDRE)
Consensus Price Target: $48.80 (62.6% implied return)
Originally known as Safariland, Cadre (NYSE: CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Why Are We Cautious About CDRE?
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 1.1 percentage points
- Performance over the past two years shows its incremental sales were less profitable, as its 7.5% annual earnings per share growth trailed its revenue gains
- Diminishing returns on capital suggest its earlier profit pools are drying up
Cadre’s stock price of $30.01 implies a valuation ratio of 23.6x forward P/E. Dive into our free research report to see why there are better opportunities than CDRE.
Two Stocks to Watch:
Upstart (UPST)
Consensus Price Target: $46.56 (89% implied return)
Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart (NASDAQ: UPST) is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.
Why Do We Like UPST?
- Loan originations on its platform are soaring as they averaged 51.6% growth over the last year, enabling the company to collect more fees and expand into new markets like credit cards.
- Notable projected revenue growth of 35.6% for the next 12 months hints at market share gains
- Operating margin improvement of 31.2 percentage points over the last year demonstrates its ability to scale efficiently
At $24.64 per share, Upstart trades at 2x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Roku (ROKU)
Consensus Price Target: $126.52 (45.9% implied return)
With a name meaning six in Japanese because it was the founder's sixth company that he started, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.
Why Are We Bullish on ROKU?
- Total Hours Streamed are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Free cash flow margin jumped by 14.9 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Roku is trading at $86.74 per share, or 18.2x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
