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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. 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:
GATX (GATX)
Consensus Price Target: $218.75 (19.2% implied return)
Originally founded to ship beer, GATX (NYSE: GATX) provides leasing and management services for railcars and other transportation assets globally.
Why Are We Hesitant About GATX?
- Free cash flow margin shrank by 217.1 percentage points over the last five years, suggesting the company stepped up its investments to maintain its competitive edge
- Low returns on capital reflect management’s struggle to allocate funds effectively
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
GATX’s stock price of $183.45 implies a valuation ratio of 17.5x forward P/E. Read our free research report to see why you should think twice about including GATX in your portfolio.
Two Stocks to Buy:
Lyft (LYFT)
Consensus Price Target: $19 (35.7% implied return)
Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada.
Why Is LYFT a Good Business?
- Active Riders are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Additional sales over the last three years increased its profitability as the 69.1% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin expanded by 24.1 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Lyft is trading at $14.01 per share, or 7.3x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
TPG (TPG)
Consensus Price Target: $55.13 (31.2% implied return)
Founded in 1992 and managing over 300 active portfolio companies across more than 30 countries, TPG (NASDAQ: TPG) is a global alternative asset management firm that invests across private equity, credit, real estate, and public market strategies.
Why Are We Bullish on TPG?
- Annual revenue growth of 23.6% over the last five years was superb and indicates its market share increased during this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 28.8% outpaced its revenue gains
At $42.02 per share, TPG trades at 14.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
