2 of Wall Street's Favorite Stocks Worth Your Attention and 1 That Underwhelm

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 are two stocks likely to meet or exceed Wall Street’s lofty expectations and one where consensus estimates seem disconnected from reality.

One Stock to Sell:

Farmer Mac (AGM)

Consensus Price Target: $226 (39.1% implied return)

Created by Congress in 1987 to build a bridge between Wall Street and rural America, Farmer Mac (NYSE:AGM) provides a secondary market for agricultural and rural loans, helping lenders increase their liquidity and lending capacity to serve rural America.

Why Are We Hesitant About AGM?

1. Elevated debt-to-equity ratio of 19.8× suggests the firm is overleveraged and may struggle to secure additional financing

Farmer Mac is trading at $162.50 per share, or 9x forward P/E. Dive into our free research report to see why there are better opportunities than AGM.

Two Stocks to Buy:

Verra Mobility (VRRM)

Consensus Price Target: $29.17 (21.4% implied return)

Aiming to wrap technology and data around a historically manual and paper-based industry, Verra Mobility (NYSE:VRRM) is a leading provider of smart mobility technology to address tolls and violations, title and registration services, as well as safety and traffic enforcement.

Why Is VRRM a Top Pick?

1. Market share has increased this cycle as its 15.7% annual revenue growth over the last five years was exceptional
2. Additional sales over the last five years increased its profitability as the 20.6% annual growth in its earnings per share outpaced its revenue
3. Robust free cash flow margin of 20.2% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety

At $24.03 per share, Verra Mobility trades at 17.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Popular (BPOP)

Consensus Price Target: $145.56 (19.9% implied return)

Founded in 1893 as the first bank in Puerto Rico to serve the working class, Popular (NASDAQ:BPOP) is a financial holding company that provides retail, mortgage, and commercial banking services primarily in Puerto Rico and the mainland United States.

Why Will BPOP Outperform?

1. Net interest margin expanded by 19.7 basis points (100 basis points = 1 percentage point) over the last two years, providing additional flexibility for investments
2. Share buybacks catapulted its annual earnings per share growth to 18%, which outperformed its revenue gains over the last five years
3. Balance sheet strength has increased this cycle as its 22.5% annual tangible book value per share growth over the last two years was exceptional

Popular’s stock price of $121.39 implies a valuation ratio of 1.3x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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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