1 of Wall Street's Favorite Stock with Impressive Fundamentals and 2 We Brush Off

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. That said, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

Matthews (MATW)

Consensus Price Target: $38 (39.8% implied return)

Originally a death care company, Matthews International (NASDAQ:MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies.

Why Are We Out on MATW?

1. Products and services have few die-hard fans as sales have declined by 1.9% annually over the last five years
2. Cash-burning history makes us doubt the long-term viability of its business model
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Matthews’s stock price of $27.19 implies a valuation ratio of 0.6x trailing 12-month price-to-sales. Read our free research report to see why you should think twice about including MATW in your portfolio.

Merit Medical Systems (MMSI)

Consensus Price Target: $104.27 (26.4% implied return)

Founded in 1987 and now offering over 1,700 patented products across global markets, Merit Medical Systems (NASDAQ:MMSI) manufactures and markets specialized medical devices used in minimally invasive procedures for cardiology, radiology, oncology, critical care, and endoscopy.

Why Does MMSI Fall Short?

1. Subscale operations are evident in its revenue base of $1.48 billion, meaning it has fewer distribution channels than its larger rivals
2. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Merit Medical Systems is trading at $82.50 per share, or 20.3x forward P/E. If you’re considering MMSI for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

First Solar (FSLR)

Consensus Price Target: $280.49 (28.6% implied return)

Headquartered in Arizona, First Solar (NASDAQ:FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.

Why Will FSLR Outperform?

1. Annual revenue growth of 26.4% over the last two years was superb and indicates its market share increased during this cycle
2. Additional sales over the last two years increased its profitability as the 71.6% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin is now positive, indicating the company has achieved financial self-sustainability

At $218.15 per share, First Solar trades at 10.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.