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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. 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:
Bally's (BALY)
Consensus Price Target: $15.67 (34.8% implied return)
Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE: BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms.
Why Do We Steer Clear of BALY?
- Sales trends were unexciting over the last two years as its 4.6% annual growth was below the typical consumer discretionary company
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- High net-debt-to-EBITDA ratio of 15× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Bally’s stock price of $11.63 implies a valuation ratio of 10.2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BALY doesn’t pass our bar.
Two Stocks to Watch:
Domino's (DPZ)
Consensus Price Target: $478.58 (32.3% implied return)
Founded by two brothers in Michigan, Domino’s (NYSE: DPZ) is a globally recognized pizza chain known for its creative marketing and fast delivery.
Why Are We Fans of DPZ?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 19%
- Free cash flow margin expanded by 2.7 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends
At $361.65 per share, Domino's trades at 18.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Visa (V)
Consensus Price Target: $400.20 (30.9% implied return)
Processing over 829 million transactions daily and connecting billions of cards to 150 million merchant locations worldwide, Visa (NYSE: V) operates one of the world's largest electronic payments networks, facilitating secure money movement across more than 200 countries through its VisaNet processing platform.
Why Is V a Good Business?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 14% annual sales growth over the last five years
- Share repurchases over the last five years enabled its annual earnings per share growth of 19% to outpace its revenue gains
- Industry-leading 45.7% return on equity demonstrates management’s skill in finding high-return investments
Visa is trading at $305.72 per share, or 23x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
