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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here are two stocks where Wall Street’s excitement appears well-founded and one where consensus estimates seem disconnected from reality.
One Stock to Sell:
Microchip Technology (MCHP)
Consensus Price Target: $113.38 (41.4% implied return)
Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Why Should You Sell MCHP?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 21.4% annually over the last two years
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- 17.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
At $80.17 per share, Microchip Technology trades at 25.8x forward P/E. Dive into our free research report to see why there are better opportunities than MCHP.
Two Stocks to Watch:
Palantir Technologies (PLTR)
Consensus Price Target: $183.12 (39.1% implied return)
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ: PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Why Will PLTR Outperform?
- Average billings growth of 67.6% over the last year enhances its liquidity and shows there is steady demand for its products
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Strong free cash flow margin of 54.1% enables it to reinvest or return capital consistently
Palantir Technologies is trading at $131.64 per share, or 40.4x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Upwork (UPWK)
Consensus Price Target: $12.17 (34.2% implied return)
Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ: UPWK) is an online platform where businesses and independent professionals connect to get work done.
Why Are We Fans of UPWK?
- Customer spending is rising as the company has focused on monetization over the last two years, leading to 10.1% annual growth in its average revenue per customer
- Additional sales over the last three years increased its profitability as the 239% annual growth in its earnings per share outpaced its revenue
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
Upwork’s stock price of $9.07 implies a valuation ratio of 4.2x forward EV/EBITDA. 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
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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
