1 of Wall Street's Favorite Stock on Our Watchlist and 2 We Brush Off

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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

EVgo (EVGO)

Consensus Price Target: $6.30 (61.5% implied return)

Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ:EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.

Why Do We Think Twice About EVGO?

1. Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

EVgo’s stock price of $3.90 implies a valuation ratio of 18x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including EVGO in your portfolio.

West Pharmaceutical Services (WST)

Consensus Price Target: $316.36 (28.6% implied return)

Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE:WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.

Why Are We Wary of WST?

1. Sales trends were unexciting over the last two years as its 1.6% annual growth was below the typical healthcare company
2. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 3.9 percentage points
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

West Pharmaceutical Services is trading at $245.95 per share, or 36.7x forward P/E. To fully understand why you should be careful with WST, check out our full research report (it’s free).

One Stock to Watch:

Wintrust Financial (WTFC)

Consensus Price Target: $154 (19.9% implied return)

Founded in 1991 as a community-focused alternative to big banks in the Chicago area, Wintrust Financial (NASDAQGS:WTFC) operates community banks in the Chicago area and provides specialty finance services including insurance premium financing and wealth management.

Why Does WTFC Stand Out?

1. Market share has increased this cycle as its 15.4% annual net interest income growth over the last five years was exceptional
2. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 5% annually
3. Impressive 10.3% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle

At $128.45 per share, Wintrust Financial trades at 1.3x forward P/B. 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

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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