3 of Wall Street’s Favorite Stocks to Target This Week
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 where Wall Street’s excitement appears well-founded.
Comfort Systems (FIX)
Consensus Price Target: $2,199 (53.9% implied return)
Formed through the merger of 12 companies, Comfort Systems (NYSE:FIX) provides mechanical and electrical contracting services.
Why Is FIX a Top Pick?
- Demand is greater than supply as the company’s 56% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Free cash flow margin expanded by 15.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are climbing as management makes more lucrative bets
At $1,429 per share, Comfort Systems trades at 27.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Advanced Energy (AEIS)
Consensus Price Target: $420.33 (78.1% implied return)
Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ:AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.
Why Do We Like AEIS?
- Impressive 16.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Exciting sales outlook for the upcoming 12 months calls for 36.8% growth, an acceleration from its two-year trend
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 46.8% annually
Advanced Energy is trading at $235.95 per share, or 18.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Happen Bank (HAPN)
Consensus Price Target: $24.50 (69.1% implied return)
Pioneering peer-to-peer lending in the US before evolving into a digital bank, Happen Bank (NASDAQ:HAPN) operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.
Why Should You Buy HAPN?
- Annual revenue growth of 18.1% 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 108% outpaced its revenue gains
- Management team has demonstrated it can invest in profitable ventures through its 12% five-year return on equity
Happen Bank’s stock price of $14.49 implies a valuation ratio of 7.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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.
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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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.