1 of Wall Street's Favorite Stock on Our Buy List and 2 That Underwhelm

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. Keeping that in mind, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.

Two Stocks to Sell:

WeightWatchers (WW)

Consensus Price Target: $47.33 (118% implied return)

Known by many for its old cable television commercials, WeightWatchers (NASDAQ:WW) is a wellness company offering a range of products and services promoting weight loss and healthy habits.

Why Are We Wary of WW?

1. Performance surrounding its members has lagged its peers
2. Poor free cash flow margin of -0.8% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Eroding returns on capital suggest its historical profit centers are aging

WeightWatchers’s stock price of $21.71 implies a valuation ratio of 16.3x forward P/E. Dive into our free research report to see why there are better opportunities than WW.

Surgery Partners (SGRY)

Consensus Price Target: $26.91 (77% implied return)

With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ:SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals.

Why Does SGRY Give Us Pause?

1. Underwhelming unit sales over the past two years imply it may need to invest in improvements to get back on track
2. Low free cash flow margin of 4.6% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $15.20 per share, Surgery Partners trades at 24.8x forward P/E. To fully understand why you should be careful with SGRY, check out our full research report (it’s free for active Edge members).

One Stock to Buy:

AppLovin (APP)

Consensus Price Target: $718.71 (40.3% implied return)

Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.

Why Will APP Beat the Market?

1. Annual revenue growth of 30.9% over the past two years was outstanding, reflecting market share gains
2. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
3. Strong free cash flow margin of 64.5% enables it to reinvest or return capital consistently

AppLovin is trading at $512.21 per share, or 24.7x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% 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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