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 are three stocks where Wall Street’s excitement appears well-founded.
Amazon (AMZN)
Consensus Price Target: $312.79 (27.6% implied return)
Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ: AMZN) is the world’s largest online retailer and provider of cloud computing services.
Why Are We Positive on AMZN?
- Amazon revolutionized the way consumers shop. This isn’t the only tailwind to its impressive revenue growth, as its highly profitable AWS segment has also driven top-line momentum.
- The company’s best-in-class revenue growth coupled with modest operating leverage on its past infrastructure investments has led to elite EPS growth over a multi-year period.
- Though dominant, Amazon’s capital-intensive e-commerce business means its profitability is structurally lower than its pure-play tech peers. Can the company pull it up, or are we reaching a ceiling?
Amazon’s stock price of $245.14 implies a valuation ratio of 29.5x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.
Guidewire Software (GWRE)
Consensus Price Target: $207 (62.8% implied return)
With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE: GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics.
Why Is GWRE a Good Business?
- Impressive 21.7% annual revenue growth over the last two years indicates it’s winning market share
- Billings growth has averaged 20.6% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Guidewire Software is trading at $127.14 per share, or 7.1x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Synchrony Financial (SYF)
Consensus Price Target: $89.41 (26.8% implied return)
Powering over 73 million active accounts and partnerships with major brands like Amazon, PayPal, and Lowe's, Synchrony Financial (NYSE: SYF) provides credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and digital platforms.
Why Are We Backing SYF?
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 37.9% annually
- Impressive 15.9% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
- ROE punches in at 22.2%, illustrating management’s expertise in identifying profitable investments
At $70.54 per share, Synchrony Financial trades at 7.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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.
