1 of Wall Street's Favorite Stock with Exciting Potential and 2 We Ignore

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.

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 likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.

Two Stocks to Sell:

Insteel (IIIN)

Consensus Price Target: $42 (27.6% implied return)

Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE:IIIN) provides steel wire reinforcing products for concrete.

Why Are We Hesitant About IIIN?

1. Sales trends were unexciting over the last two years as its 5.9% annual growth was below the typical industrials company
2. Free cash flow margin dropped by 8.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Eroding returns on capital suggest its historical profit centers are aging

Insteel is trading at $32.91 per share, or 11.7x forward P/E. To fully understand why you should be careful with IIIN, check out our full research report (it’s free).

Iridium (IRDM)

Consensus Price Target: $28.13 (35% implied return)

With a constellation of 66 low-earth orbit satellites providing coverage to every inch of the planet, Iridium Communications (NASDAQ:IRDM) operates a global satellite network that provides voice and data services to customers in remote areas where traditional telecommunications are unavailable.

Why Are We Wary of IRDM?

1. Estimated sales growth of 2.6% for the next 12 months implies demand will slow from its two-year trend
2. 4.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. Underwhelming 5.2% return on capital reflects management’s difficulties in finding profitable growth opportunities

Iridium’s stock price of $20.83 implies a valuation ratio of 18.4x forward P/E. If you’re considering IRDM for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

MercadoLibre (MELI)

Consensus Price Target: $2,817 (26.8% implied return)

Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.

Why Is MELI a Good Business?

1. Has the opportunity to boost monetization through new features and premium offerings as its unique active buyers have grown by 21.7% annually over the last two years
2. Grip over its ecosystem is highlighted by its ability to grow engagement while increasing the average revenue per user by 13.9% annually
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute

At $2,221 per share, MercadoLibre trades at 23.3x forward EV/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

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 Growth Stocks for this month. 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.