1 of Wall Street's Favorite Stock on Our Watchlist and 2 Facing Headwinds

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.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here is one stock where Wall Street’s excitement appears well-founded and two where consensus estimates seem disconnected from reality.

Two Stocks to Sell:

Asure Software (ASUR)

Consensus Price Target: $13.39 (63.7% implied return)

Operating in the often-overlooked smaller metropolitan markets where HR expertise can be scarce, Asure Software (NASDAQ:ASUR) provides cloud-based human capital management software and services that help small and medium-sized businesses manage payroll, taxes, time tracking, and HR compliance.

Why Do We Avoid ASUR?

1. Muted 4.4% annual revenue growth over the last two years shows its demand lagged behind its software peers
2. Offerings struggled to generate meaningful interest as its average billings growth of 7.1% over the last year did not impress
3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 3.2 percentage points

Asure Software’s stock price of $8.18 implies a valuation ratio of 1.5x forward price-to-sales. To fully understand why you should be careful with ASUR, check out our full research report (it’s free).

Danaher (DHR)

Consensus Price Target: $243.43 (27.6% implied return)

Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE:DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.

Why Does DHR Worry Us?

1. Annual sales declines of 2.9% for the past two years show its products and services struggled to connect with the market during this cycle
2. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
3. Free cash flow margin dropped by 7.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $190.80 per share, Danaher trades at 23.4x forward P/E. Dive into our free research report to see why there are better opportunities than DHR.

One Stock to Watch:

Zoetis (ZTS)

Consensus Price Target: $190.09 (33.2% implied return)

Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.

Why Could ZTS Be a Winner?

1. Average constant currency growth of 8.6% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Zoetis is trading at $142.70 per share, or 22x 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

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