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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Alamo (ALG)
Consensus Price Target: $207.40 (22.7% implied return)
Expanding its markets through acquisitions since its founding, Alamo (NYSE: ALG) designs, manufactures, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use.
Why Are We Wary of ALG?
- Sales tumbled by 2.6% annually over the last two years, showing market trends are working against its favor during this cycle
- Projected sales growth of 4.2% for the next 12 months suggests sluggish demand
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
At $169.08 per share, Alamo trades at 16.6x forward P/E. To fully understand why you should be careful with ALG, check out our full research report (it’s free).
3D Systems (DDD)
Consensus Price Target: $3.75 (59.6% implied return)
Founded by the inventor of stereolithography, 3D Systems (NYSE: DDD) engineers, manufactures, and sells 3D printers and other related products to the aerospace, automotive, healthcare, and consumer goods industries.
Why Do We Avoid DDD?
- Annual sales declines of 7% for the past five years show its products and services struggled to connect with the market during this cycle
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
3D Systems’s stock price of $2.35 implies a valuation ratio of 0.8x forward price-to-sales. Read our free research report to see why you should think twice about including DDD in your portfolio.
One Stock to Buy:
Cencora (COR)
Consensus Price Target: $402.92 (31% implied return)
Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE: COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.
Why Are We Backing COR?
- Enormous revenue base of $325.8 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
- Share buybacks catapulted its annual earnings per share growth to 14.5%, which outperformed its revenue gains over the last five years
- Industry-leading 56.8% return on capital demonstrates management’s skill in finding high-return investments
Cencora is trading at $307.50 per share, or 17.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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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.
