2 of Wall Street's Favorite Stocks to Keep an Eye On and 1 We Brush Off

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 are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where analysts may be overlooking some important risks.

One Stock to Sell:

NBT Bancorp (NBTB)

Consensus Price Target: $48.60 (19.2% implied return)

Tracing its roots back to 1856 when it first opened its doors in Norwich, New York, NBT Bancorp (NASDAQ:NBTB) is a community-oriented financial institution providing banking, wealth management, and insurance services to individuals and businesses across the northeastern United States.

Why Are We Hesitant About NBTB?

1. Inferior net interest margin of 3.3% means it must compensate for lower profitability through increased loan originations
2. Incremental sales over the last five years were less profitable as its 3.4% annual earnings per share growth lagged its revenue gains
3. Estimated tangible book value per share growth of 6.5% for the next 12 months implies profitability will slow from its two-year trend

NBT Bancorp’s stock price of $40.76 implies a valuation ratio of 1.1x forward P/B. Read our free research report to see why you should think twice about including NBTB in your portfolio.

Two Stocks to Watch:

DoubleVerify (DV)

Consensus Price Target: $18.84 (64.3% implied return)

Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE:DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location.

Why Are We Positive On DV?

1. Annual revenue growth of 27.9% over the last five years was superb and indicates its market share is rising
2. Software is difficult to replicate at scale and leads to a stellar gross margin of 82.1%
3. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs

At $11.47 per share, DoubleVerify trades at 2.4x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Warby Parker (WRBY)

Consensus Price Target: $26.58 (19% implied return)

Founded in 2010, Warby Parker (NYSE:WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.

Why Do We Like WRBY?

1. Rapidly increasing store base reflects a desire to sell in new markets and scale quickly
2. Collection of products is difficult to replicate at scale and leads to a best-in-class gross margin of 54.9%
3. Earnings per share grew by 68.5% annually over the last three years, massively outpacing its peers

Warby Parker is trading at $22.33 per share, or 50.5x forward P/E. Is now the time to initiate a position? Find out in our full 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 5 Strong Momentum 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 Kadant (+351% 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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