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.
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 where Wall Street’s excitement appears well-founded and one where analysts may be overlooking some important risks.
One Stock to Sell:
Quest Resource (QRHC)
Consensus Price Target: $3.08 (47.5% implied return)
Recycling corporate waste to help companies be more sustainable, Quest Resource (NASDAQ:QRHC) is a provider of waste and recycling services.
Why Is QRHC Risky?
- Annual sales declines of 3.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Quest Resource’s stock price of $2.09 implies a valuation ratio of 48x forward P/E. Read our free research report to see why you should think twice about including QRHC in your portfolio.
Two Stocks to Buy:
LPL Financial (LPLA)
Consensus Price Target: $443.08 (19.4% implied return)
As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ:LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.
Why Do We Love LPLA?
- Annual revenue growth of 26.4% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 23.7% annually, topping its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $370.94 per share, LPL Financial trades at 16.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
NCR Atleos (NATL)
Consensus Price Target: $45.17 (22.3% implied return)
Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos (NYSE:NATL) provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.
Why Is NATL a Good Business?
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 82% over the last two years outstripped its revenue performance
NCR Atleos is trading at $36.93 per share, or 8x forward P/E. Is now the right time to buy? Find out in our full 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-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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