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3 of Wall Street’s Favorite Stocks on Our Watchlist
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.
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 three stocks likely to meet or exceed Wall Street’s lofty expectations.
Federal Signal (FSS)
Consensus Price Target: $143.57 (20.1% implied return)
Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE:FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.
Why Do We Love FSS?
- Market share has increased this cycle as its 15.3% annual revenue growth over the last two years was exceptional
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 29.8% annually, topping its revenue gains
- Free cash flow margin increased by 11.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Federal Signal is trading at $119.50 per share, or 23.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Byrna (BYRN)
Consensus Price Target: $6.83 (98.6% implied return)
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ:BYRN) is a provider of non-lethal weapons.
What Makes BYRN Stand Out?
- Impressive 35.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Free cash flow profile has reached break even, showing the company is at an important crossroads
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Byrna’s stock price of $3.44 implies a valuation ratio of 0.9x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.
iRhythm (IRTC)
Consensus Price Target: $178.38 (54.6% implied return)
Pioneering the shift from bulky, short-term heart monitors to sleek, wire-free patches, iRhythm Technologies (NASDAQ:IRTC) provides wearable cardiac monitoring devices and AI-powered analysis services that help physicians detect and diagnose heart rhythm disorders.
Why Do We Watch IRTC?
- Annual revenue growth of 23.9% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 27.5% outpaced its revenue gains
- Free cash flow flipped to positive over the last five years, indicating the company has passed a significant test
At $115.41 per share, iRhythm trades at 353.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.