1 of Wall Street's Favorite Stock with Exciting Potential and 2 We Find Risky

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. That said, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

Noodles (NDLS)

Consensus Price Target: $2 (186% implied return)

Offering pasta, mac and cheese, pad thai, and more, Noodles & Company (NASDAQ:NDLS) is a casual restaurant chain that serves all manner of noodles from around the world.

Why Do We Pass on NDLS?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
2. Incremental sales over the last six years were much less profitable as its earnings per share fell by 47.8% annually while its revenue grew
3. High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $0.70 per share, Noodles trades at 2.1x forward EV-to-EBITDA. To fully understand why you should be careful with NDLS, check out our full research report (it’s free).

Assured Guaranty (AGO)

Consensus Price Target: $105.75 (28.2% implied return)

Serving as a financial safety net for over $11 trillion in debt service payments since its founding in 2003, Assured Guaranty (NYSE:AGO) provides credit protection products that guarantee scheduled payments on municipal bonds, infrastructure projects, and structured finance obligations.

Why Are We Wary of AGO?

1. Insurance offerings face significant market challenges this cycle as net premiums earned contracted by 4.3% annually over the last five years
2. Projected sales decline of 29.8% over the next 12 months indicates demand will continue deteriorating
3. Low return on equity reflects management’s struggle to allocate funds effectively

Assured Guaranty is trading at $82.49 per share, or 0.7x forward P/B. Dive into our free research report to see why there are better opportunities than AGO.

One Stock to Buy:

Wingstop (WING)

Consensus Price Target: $396.43 (49% implied return)

The passion project of two chicken wing aficionados in Texas, Wingstop (NASDAQ:WING) is a popular fast-food chain known for its flavorful and crispy chicken wings offered in a variety of sauces and seasonings.

Why Is WING a Top Pick?

1. Fast expansion of new restaurants to reach markets with few or no locations is justified by its same-store sales growth
2. Customers are lining up to eat at its restaurants as the company’s same-store sales growth averaged 14.6% over the past two years
3. Excellent operating margin of 25.5% highlights the efficiency of its business model

Wingstop’s stock price of $266.02 implies a valuation ratio of 61.4x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.