Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. 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:
Assured Guaranty (AGO)
Consensus Price Target: $90.33 (20.3% implied return)
Serving as a financial safety net for over $11 trillion in debt service payments since its founding in 2003, Assured Guaranty (NYSE: AGO) provides credit protection products that guarantee scheduled payments on municipal bonds, infrastructure projects, and structured finance obligations.
Why Do We Pass on AGO?
- Net premiums earned contracted by 3.8% annually over the last five years, showing unfavorable market dynamics this cycle
- Inability to adjust its cost structure while its revenue declined over the last two years led to a 10.5 percentage point drop in the company’s pre-tax profit margin
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
Assured Guaranty is trading at $75.09 per share, or 0.6x forward P/B. Check out our free in-depth research report to learn more about why AGO doesn’t pass our bar.
Two Stocks to Buy:
Sea (SE)
Consensus Price Target: $155.29 (37.5% implied return)
Founded in 2009 and a publicly traded company since 2017, Sea (NYSE: SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.
Why Is SE a Top Pick?
- Paying Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Strong engagement trends coupled with 15.7% annual growth in its average revenue per user demonstrate its platform’s stickiness with die-hard customers
- Earnings per share grew by 25.8% annually over the last three years, massively outpacing its peers
Sea’s stock price of $112.93 implies a valuation ratio of 4.6x forward price-to-gross profit. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Axon (AXON)
Consensus Price Target: $693.40 (35.5% implied return)
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Are We Bullish on AXON?
- Offerings are pivotal for their customers’ operations as its ARR has averaged 36.9% growth over the past two years
- Notable projected revenue growth of 32.5% for the next 12 months hints at market share gains
- Earnings per share grew by 23.2% annually over the last two years and trumped its peers
At $511.77 per share, Axon trades at 57.7x 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
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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.
