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.
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 excitement appears well-founded and one where its enthusiasm might be excessive.
One Stock to Sell:
Perma-Fix (PESI)
Consensus Price Target: $20 (41.6% implied return)
Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ: PESI) provides environmental waste treatment services.
Why Do We Pass on PESI?
- Sales tumbled by 9.4% annually over the last five years, showing market trends are working against its favor during this cycle
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Perma-Fix’s stock price of $14.13 implies a valuation ratio of 483.3x forward P/E. Dive into our free research report to see why there are better opportunities than PESI.
Two Stocks to Watch:
Doximity (DOCS)
Consensus Price Target: $40.19 (57.9% implied return)
With over 80% of U.S. physicians as members of its digital community, Doximity (NYSE: DOCS) operates a digital platform that enables physicians and other healthcare professionals to collaborate, stay current with medical news, manage their careers, and conduct virtual patient visits.
Why Does DOCS Stand Out?
- Average billings growth of 17.1% over the last year enhances its liquidity and shows there is steady demand for its products
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Robust free cash flow margin of 48.2% gives it many options for capital deployment
Doximity is trading at $25.45 per share, or 7.2x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Molina Healthcare (MOH)
Consensus Price Target: $161.75 (13.1% implied return)
Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE: MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.
Why Could MOH Be a Winner?
- Impressive 18.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Sizeable revenue base of $45.43 billion gives it economies of scale and favorable reimbursement terms with healthcare providers
At $143.00 per share, Molina Healthcare trades at 18.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
