2 of Wall Street's Favorite Stocks on Our Watchlist and 1 Facing Headwinds

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 its enthusiasm might be excessive.

One Stock to Sell:

EVgo (EVGO)

Consensus Price Target: $6.54 (119% implied return)

Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ:EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.

Why Does EVGO Fall Short?

1. Persistent operating margin losses suggest the business manages its expenses poorly
2. Negative free cash flow raises questions about the return timeline for its investments
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

EVgo is trading at $2.99 per share, or 11.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including EVGO in your portfolio.

Two Stocks to Watch:

Coupang (CPNG)

Consensus Price Target: $32.91 (69.5% implied return)

Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".

Why Could CPNG Be a Winner?

1. Has the opportunity to boost monetization through new features and premium offerings as its active customers have grown by 11.2% annually over the last two years
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 35.4% over the last three years outstripped its revenue performance
3. Free cash flow margin increased by 9.1 percentage points over the last few years, giving the company more capital to invest or return to shareholders

At $19.42 per share, Coupang trades at 17.5x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

LPL Financial (LPLA)

Consensus Price Target: $450.85 (16.4% 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 Are We Backing LPLA?

1. Market share has increased this cycle as its 30% annual revenue growth over the last two years was exceptional
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 25.5% over the last five years outstripped its revenue performance
3. ROE punches in at 37.9%, illustrating management’s expertise in identifying profitable investments

LPL Financial’s stock price of $387.25 implies a valuation ratio of 15.8x forward P/E. Is now the time to initiate a position? 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.