2 of Wall Street's Favorite Stocks for Long-Term Investors and 1 to Think Twice About

Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here are two stocks likely to meet or exceed Wall Street’s lofty expectations and one where analysts may be overlooking some important risks.

One Stock to Sell:

Nexstar Media (NXST)

Consensus Price Target: $192.92 (31.9% implied return)

Founded in 1996, Nexstar (NASDAQ:NXST) is an American media company operating numerous local television stations and digital media outlets across the country.

Why Is NXST Not Exciting?

1. Annual revenue growth of 1.9% over the last two years was below our standards for the consumer discretionary sector
2. Projected sales decline of 7.9% for the next 12 months points to a tough demand environment ahead
3. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 4.2 percentage points over the next year

Nexstar Media’s stock price of $151.24 implies a valuation ratio of 11.7x forward price-to-earnings. Check out our free in-depth research report to learn more about why NXST doesn’t pass our bar.

Two Stocks to Watch:

Procore (PCOR)

Consensus Price Target: $84.69 (49.6% implied return)

Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore (NYSE:PCOR) offers a software-as-service project, finance, and quality management platform for the construction industry.

Why Are We Fans of PCOR?

1. ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
2. Software is difficult to replicate at scale and leads to a premier gross margin of 82.2%
3. Operating margin expanded by 10.9 percentage points over the last year as it scaled and became more efficient

At $59.49 per share, Procore trades at 7.4x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

AZZ (AZZ)

Consensus Price Target: $99.67 (28.8% implied return)

Responsible for projects like nuclear facilities, AZZ (NYSE:AZZ) is a provider of metal coating and power infrastructure solutions.

Why Are We Positive On AZZ?

1. Annual revenue growth of 19.4% over the past two years was outstanding, reflecting market share gains this cycle
2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Earnings growth has easily exceeded the peer group average over the last two years as its EPS has compounded at 14.3% annually

AZZ is trading at $80.72 per share, or 15.3x forward price-to-earnings. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.