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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here are two stocks where Wall Street’s excitement appears well-founded and one where its enthusiasm might be excessive.
One Stock to Sell:
CBRE (CBRE)
Consensus Price Target: $181.25 (22.9% implied return)
Established in 1906, CBRE (NYSE: CBRE) is one of the largest commercial real estate services firms in the world.
Why Do We Avoid CBRE?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 11.8% over the last five years was below our standards for the consumer discretionary sector
- Low free cash flow margin of 2.5% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $147.50 per share, CBRE trades at 18x forward P/E. If you’re considering CBRE for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Powell (POWL)
Consensus Price Target: $301.25 (45% implied return)
Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE: POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.
Why Will POWL Beat the Market?
- Impressive 20.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 22.2% over the last two years outstripped its revenue performance
- Free cash flow margin jumped by 25.2 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Powell is trading at $207.72 per share, or 33.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Advanced Energy (AEIS)
Consensus Price Target: $429.08 (30.8% 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 Could AEIS Be a Winner?
- Annual revenue growth of 16.3% over the past two years was outstanding, reflecting market share gains this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 36.6%
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 46.8% annually
Advanced Energy’s stock price of $328.05 implies a valuation ratio of 23.1x 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
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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.
