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. Keeping that in mind, here are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where its enthusiasm might be excessive.
One Software Stock to Sell:
Sprinklr (CXM)
Consensus Price Target: $8.44 (54.8% implied return)
With a proprietary AI engine processing 450 million data points daily across 30+ digital channels, Sprinklr (NYSE: CXM) provides cloud-based software that helps large enterprises manage customer experiences across social, messaging, chat, and voice channels.
Why Is CXM Risky?
- Offerings struggled to generate meaningful interest as its average billings growth of 2.2% over the last year did not impress
- Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
Sprinklr is trading at $5.45 per share, or 1.4x forward price-to-sales. Read our free research report to see why you should think twice about including CXM in your portfolio.
Two Software Stocks to Watch:
Snowflake (SNOW)
Consensus Price Target: $418.29 (27.2% implied return)
Named after the unique architecture of its data warehouse which resembles a snowflake pattern, Snowflake (NYSE: SNOW) provides a cloud-based data platform that enables organizations to consolidate, analyze, and share data across multiple cloud providers.
Why Will SNOW Outperform?
- Billings growth has averaged 24.8% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Market share is on track to rise over the next 12 months as its 32.1% projected revenue growth implies demand will accelerate from its two-year trend
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Snowflake’s stock price of $328.85 implies a valuation ratio of 16.1x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
PTC (PTC)
Consensus Price Target: $173.35 (34.7% implied return)
Originally known as Parametric Technology Corporation until its 2013 rebranding, PTC (NASDAQ: PTC) provides software that helps manufacturers design, develop, and service physical products through digital solutions for CAD, PLM, ALM, and SLM.
Why Do We Like PTC?
- Superior software functionality and low servicing costs result in a stellar gross margin of 84.5%
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Highly efficient business model is illustrated by its impressive 37.8% operating margin, and its profits increased over the last year as it scaled
At $128.69 per share, PTC trades at 5.3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
