Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Amtech (ASYS)
Consensus Price Target: $22 (16.5% implied return)
Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ: ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors.
Why Are We Cautious About ASYS?
- Annual sales declines of 14.9% for the past two years show its products and services struggled to connect with the market during this cycle
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Underwhelming -0.8% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam
At $18.88 per share, Amtech trades at 3.5x trailing 12-month price-to-sales. To fully understand why you should be careful with ASYS, check out our full research report (it’s free).
First American Financial (FAF)
Consensus Price Target: $85.80 (23.3% implied return)
Tracing its roots back to 1889 when California was experiencing its first major real estate boom, First American Financial (NYSE: FAF) provides title insurance, settlement services, and risk solutions for residential and commercial real estate transactions across the United States and internationally.
Why Does FAF Worry Us?
- Net premiums earned plateaued over the last five years, signaling weak incremental demand for its insurance policies
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 1.4% annually
- Capital trends were unexciting over the last five years as its 3.6% annual book value per share growth was below the typical insurance firm
First American Financial’s stock price of $69.58 implies a valuation ratio of 1.2x forward P/B. Read our free research report to see why you should think twice about including FAF in your portfolio.
One Stock to Watch:
Zebra (ZBRA)
Consensus Price Target: $333.18 (30.6% implied return)
Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.
Why Does ZBRA Stand Out?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 12.5% over the past two years
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Zebra is trading at $255.15 per share, or 13.8x forward P/E. Is now a good time to buy? See for yourself in our in-depth 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 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
