
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 is one stock where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
ABM (ABM)
Consensus Price Target: $51.43 (32.8% implied return)
With roots dating back to 1909 as a window washing company, ABM Industries (NYSE: ABM) provides integrated facility management, infrastructure, and mobility solutions across various sectors including commercial, manufacturing, education, and aviation.
Why Are We Wary of ABM?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Earnings per share have contracted by 2.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Low free cash flow margin of 1.9% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
ABM is trading at $38.72 per share, or 9.5x forward P/E. To fully understand why you should be careful with ABM, check out our full research report (it’s free).
Thermo Fisher (TMO)
Consensus Price Target: $661.40 (33.6% implied return)
With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific (NYSE: TMO) provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide.
Why Does TMO Fall Short?
- The company has faced growth challenges as its 2% annual revenue increases over the last two years fell short of other healthcare companies
- 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
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 8.3 percentage points
At $495.00 per share, Thermo Fisher trades at 20.1x forward P/E. Check out our free in-depth research report to learn more about why TMO doesn’t pass our bar.
One Stock to Buy:
Astronics (ATRO)
Consensus Price Target: $87.58 (27.9% implied return)
Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ: ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.
Why Are We Backing ATRO?
- Impressive 11.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Free cash flow margin expanded by 7.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital suggest its past investments are beginning to deliver value
Astronics’s stock price of $68.45 implies a valuation ratio of 26.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
