1 of Wall Street’s favorite stocks with exciting potential and 2 we question
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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where consensus estimates seem disconnected from reality.
Two stocks to sell:
Primoris (PRIM)
Consensus Price Target: $115.13 (80.1% implied return)
Listed on the NASDAQ in 2008, Primoris (NYSE:PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.
Why Does PRIM Fall Short?
- Gross margin of 10.3% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Earnings per share have dipped by 1.5% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Poor free cash flow margin of 2.2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Primoris’s stock price of $63.94 implies a valuation ratio of 17x forward P/E. To fully understand why you should be careful with PRIM, check out our full research report (it’s free).
Martin Marietta Materials (MLM)
Consensus Price Target: $632.46 (25.8% implied return)
Operating one of North America's largest networks of quarries, including 14 underground mines, Martin Marietta Materials (NYSE:MLM) is a natural resource-based building materials company that supplies aggregates, cement, and other construction materials for infrastructure and building projects.
Why Do We Think Twice About MLM?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Flat earnings per share over the last two years lagged its peers
- Underwhelming 8.1% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam
At $502.65 per share, Martin Marietta Materials trades at 28.7x forward P/E. Dive into our free research report to see why there are better opportunities than MLM.
One stock to buy:
Upstart (UPST)
Consensus Price Target: $38.38 (61.1% implied return)
Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart (NASDAQ:UPST) is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.
Why Are We Bullish on UPST?
- Loan originations on its platform are soaring as they averaged 54.3% growth over the last year, enabling the company to collect more fees and expand into new markets like credit cards.
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Free cash flow is expected to be positive next year, showing the company is at a key inflection point
Upstart is trading at $23.83 per share, or 1.6x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks we like even more
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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.