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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where its enthusiasm might be excessive.
One Stock to Sell:
Encompass Health (EHC)
Consensus Price Target: $140.33 (48.3% implied return)
With a network of 161 specialized facilities across 37 states and Puerto Rico, Encompass Health (NYSE: EHC) operates inpatient rehabilitation hospitals that help patients recover from strokes, hip fractures, and other debilitating conditions.
Why Do We Think Twice About EHC?
- Sales trends were unexciting over the last five years as its 4.7% annual growth was below the typical healthcare company
- 1.3 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
Encompass Health’s stock price of $94.60 implies a valuation ratio of 16.9x forward P/E. Check out our free in-depth research report to learn more about why EHC doesn’t pass our bar.
Two Stocks to Watch:
Snap (SNAP)
Consensus Price Target: $9.78 (34.6% implied return)
Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network.
Why Are We Fans of SNAP?
- Daily Active Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Brand power and efficient targeting help keep customer acquisition costs in check while growing its user base
- Highly efficient business model is illustrated by its impressive 9.1% EBITDA margin
Snap is trading at $7.27 per share, or 15.7x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Uber (UBER)
Consensus Price Target: $110.10 (35.1% implied return)
Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE: UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.
Why Should UBER Be on Your Watchlist?
- Monthly Active Platform Consumers have grown by 14.7% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Additional sales over the last three years increased its profitability as the 183% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 15.7 percentage points over the last few years, giving the company more capital to invest or return to shareholders
At $81.52 per share, Uber trades at 16.6x forward EV/EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
