3 of Wall Street's Favorite Stocks with Impressive Fundamentals

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. Keeping that in mind, here are three stocks where Wall Street’s positive outlook is supported by strong fundamentals.

ServiceNow (NOW)

Consensus Price Target: $1,155 (31.4% implied return)

Built on a single code base that processes over 4 billion workflow transactions daily, ServiceNow (NYSE:NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.

Why Should You Buy NOW?

1. Current remaining performance obligations (cRPO) have averaged 21.8% growth over the last year, showing it has a pipeline of unfulfilled contracts that will support revenue in the future
2. Healthy operating margin of 13.9% shows it’s a well-run company with efficient processes, and its profits increased over the last year as it scaled
3. NOW is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

ServiceNow is trading at $878.70 per share, or 12.3x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

The Bancorp (TBBK)

Consensus Price Target: $76.50 (22% implied return)

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ:TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

Why Will TBBK Beat the Market?

1. Impressive 14.6% annual net interest income growth over the last five years indicates it’s winning market share this cycle
2. Differentiated product suite results in a Strong performance of its loan book leads to a High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 4.6%
3. Earnings per share have massively outperformed its peers over the last two years, increasing by 18.5% annually

The Bancorp’s stock price of $62.69 implies a valuation ratio of 3.9x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

East West Bank (EWBC)

Consensus Price Target: $125.20 (24.2% implied return)

As the largest independent bank in the U.S. focused on bridging financial services between America and Asia, East West Bancorp (NASDAQ:EWBC) operates a commercial bank that provides personal and business banking services with a unique focus on facilitating U.S.-Asia cross-border transactions.

Why Do We Love EWBC?

1. Market share has increased this cycle as its 12.4% annual net interest income growth over the last five years was exceptional
2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Annual tangible book value per share growth of 12.4% over the last five years was superb and indicates its capital strength increased during this cycle

At $100.84 per share, East West Bank trades at 1.6x forward P/B. Is now the time to initiate a position? See for yourself 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 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.