2 of Wall Street's Favorite Stocks Worth Investigating and 1 We Avoid

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.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. 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:

Repligen (RGEN)

Consensus Price Target: $190.89 (39.2% implied return)

With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ:RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.

Why Is RGEN Risky?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 17.8 percentage points
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Repligen’s stock price of $137.13 implies a valuation ratio of 71.7x forward P/E. Check out our free in-depth research report to learn more about why RGEN doesn’t pass our bar.

Two Stocks to Watch:

Ares (ARES)

Consensus Price Target: $177.29 (36.7% implied return)

With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE:ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.

Why Are We Bullish on ARES?

1. Annual revenue growth of 21.4% over the last five years was superb and indicates its market share increased during this cycle
2. Earnings per share grew by 20.7% annually over the last five years, comfortably beating the peer group average

At $129.71 per share, Ares trades at 20.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

The Bancorp (TBBK)

Consensus Price Target: $75 (29.7% implied return)

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ:TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

Why Are We Fans of TBBK?

1. Annual net interest income growth of 14% over the last five years was superb and indicates its market share increased during this cycle
2. Share repurchases over the last five years enabled its annual earnings per share growth of 28.9% to outpace its revenue gains
3. Capital generation for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust tangible book value per share growth of 127%

The Bancorp is trading at $57.81 per share, or 3.1x forward P/B. Is now the time to initiate a position? Find out in our full 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.