2 of Wall Street's Favorite Stocks with Exciting Potential and 1 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.

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 two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where consensus estimates seem disconnected from reality.

One Stock to Sell:

SoundHound AI (SOUN)

Consensus Price Target: $16.31 (92.3% implied return)

Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ:SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.

Why Do We Think Twice About SOUN?

1. Sky-high servicing costs result in an inferior gross margin of 39.7% that must be offset through increased usage
2. Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment
3. Cash burn makes us question whether it can achieve sustainable long-term growth

At $8.49 per share, SoundHound AI trades at 16.5x forward price-to-sales. To fully understand why you should be careful with SOUN, check out our full research report (it’s free).

Two Stocks to Buy:

Zeta Global (ZETA)

Consensus Price Target: $30.25 (58.9% implied return)

Powered by an AI engine that processes over one trillion consumer signals monthly, Zeta Global (NYSE:ZETA) operates a data-driven cloud platform that helps companies target, connect, and engage with consumers through personalized marketing across channels like email, social media, and video.

Why Will ZETA Outperform?

1. Billings growth has averaged 36.4% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
2. Market share will likely rise over the next 12 months as its expected revenue growth of 31.7% is robust
3. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently

Zeta Global’s stock price of $19.04 implies a valuation ratio of 2.6x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

Fair Isaac Corporation (FICO)

Consensus Price Target: $2,012 (37.3% implied return)

Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation (NYSE:FICO) develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.

Why Is FICO a Good Business?

1. Share repurchases over the last two years enabled its annual earnings per share growth of 24.6% to outpace its revenue gains
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
3. Returns on capital are climbing as management makes more lucrative bets

Fair Isaac Corporation is trading at $1,466 per share, or 32.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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 9 Market-Beating Stocks. 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.