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 is one stock likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Tractor Supply (TSCO)
Consensus Price Target: $63.15 (26.2% implied return)
Started as a mail-order tractor parts business, Tractor Supply (NASDAQ: TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer.
Why Are We Wary of TSCO?
- Sizable revenue base leads to growth challenges as its 4.4% annual revenue increases over the last three years fell short of other consumer retail companies
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Widely-available products (and therefore stiff competition) result in an inferior gross margin of 36.4% that must be offset through higher volumes
Tractor Supply is trading at $50.03 per share, or 22.2x forward P/E. Dive into our free research report to see why there are better opportunities than TSCO.
AT&T (T)
Consensus Price Target: $30.12 (21.3% implied return)
Founded by Alexander Graham Bell, AT&T (NYSE: T) is a multinational telecomm conglomerate providing a range of communications and internet services.
Why Is T Risky?
- Products and services have few die-hard fans as sales have declined by 5.6% annually over the last five years
- Free cash flow margin is forecasted to shrink by 2.2 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- Returns on capital are increasing as management makes relatively better investment decisions
At $24.84 per share, AT&T trades at 11.5x forward P/E. Read our free research report to see why you should think twice about including T in your portfolio.
One Stock to Buy:
EMCOR (EME)
Consensus Price Target: $758.50 (22.9% implied return)
Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services
Why Will EME Outperform?
- Market share has increased this cycle as its 15.9% annual revenue growth over the last two years was exceptional
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 47.4% exceeded its revenue gains over the last two years
- Returns on capital are growing as management capitalizes on its market opportunities
EMCOR’s stock price of $617 implies a valuation ratio of 22.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
