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 is one stock likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Ladder Capital (LADR)
Consensus Price Target: $12 (20.8% implied return)
Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE: LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.
Why Does LADR Fall Short?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 8.8% annually over the last two years
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Flat tangible book value per share over the last five years suggests it must find different ways to enhance shareholder value during this cycle
At $9.94 per share, Ladder Capital trades at 0.9x forward P/B. To fully understand why you should be careful with LADR, check out our full research report (it’s free).
Martin Marietta Materials (MLM)
Consensus Price Target: $663.74 (19.9% 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 Are We Hesitant 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 underperformed the sector average
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging
Martin Marietta Materials’s stock price of $553.77 implies a valuation ratio of 27.9x forward P/E. Dive into our free research report to see why there are better opportunities than MLM.
One Stock to Buy:
Bloom Energy (BE)
Consensus Price Target: $273.51 (28.2% implied return)
Working in stealth mode for eight years, Bloom Energy (NYSE: BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.
Why Will BE Outperform?
- Impressive 53.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Free cash flow flipped to positive over the last five years, indicating the company has achieved financial self-sustainability
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Bloom Energy is trading at $213.30 per share, or 60.5x forward P/E. Is now the time to initiate a position? See for yourself 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
