2 of Wall Street's Favorite Stocks to Consider Right Now and 1 Facing Challenges

Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, 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:

Wynn Resorts (WYNN)

Consensus Price Target: $141.83 (34.6% implied return)

Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ:WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.

Why Do We Avoid WYNN?

1. 4.5% annual revenue growth over the last two years was slower than its consumer discretionary peers
2. Low free cash flow margin of 11.9% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
3. 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Wynn Resorts is trading at $105.36 per share, or 19.7x forward P/E. Check out our free in-depth research report to learn more about why WYNN doesn’t pass our bar.

Two Stocks to Watch:

Commvault (CVLT)

Consensus Price Target: $140.33 (61.3% implied return)

Born from the need to create ironclad protection in an increasingly dangerous digital world, Commvault (NASDAQ:CVLT) provides data protection and cyber resilience software that helps organizations secure, back up, and recover their data across on-premises, hybrid, and multi-cloud environments.

Why Could CVLT Be a Winner?

1. Billings growth has averaged 26.6% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
2. Superior software functionality and low servicing costs result in a stellar gross margin of 81.4%
3. Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale

At $87 per share, Commvault trades at 3.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

NetApp (NTAP)

Consensus Price Target: $119.50 (16.9% implied return)

Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ:NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.

Why Does NTAP Stand Out?

1. Billings have averaged 7.6% growth over the past two years, showing it’s securing new contracts that could potentially increase in value over time
2. Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
3. Robust free cash flow margin of 19.4% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute

NetApp’s stock price of $102.23 implies a valuation ratio of 11.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

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.