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. That said, here are two stocks likely to meet or exceed Wall Street’s lofty expectations and one where its enthusiasm might be excessive.
One Stock to Sell:
Bright Horizons (BFAM)
Consensus Price Target: $89.44 (23.3% implied return)
Founded in 1986, Bright Horizons (NYSE: BFAM) is a global provider of child care, early education, and workforce support solutions.
Why Should You Sell BFAM?
- Muted 14.4% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
- Free cash flow margin is projected to show no improvement next year
- Rising returns on capital show management is making relatively better investments
At $72.52 per share, Bright Horizons trades at 13x forward P/E. Read our free research report to see why you should think twice about including BFAM in your portfolio.
Two Stocks to Watch:
TD SYNNEX (SNX)
Consensus Price Target: $333.55 (28.1% implied return)
Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE: SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.
Why Will SNX Outperform?
- Annual revenue growth of 25.7% over the past five years was outstanding, reflecting market share gains this cycle
- Dominant market position is represented by its $69.77 billion in revenue and gives it fixed cost leverage when sales grow
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 20.9% exceeded its revenue gains over the last two years
TD SYNNEX’s stock price of $260.32 implies a valuation ratio of 13.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
The Bancorp (TBBK)
Consensus Price Target: $84.33 (23.5% implied return)
Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ: TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.
Why Are We Fans of TBBK?
- Market share has increased this cycle as its 18% annual revenue growth over the last two years was exceptional
- Anticipated efficiency ratio improvement of -6.1 percentage points over the next year signals it will gain leverage on its fixed costs and become more productive
- Share repurchases over the last five years enabled its annual earnings per share growth of 25% to outpace its revenue gains
The Bancorp is trading at $68.31 per share, or 3.7x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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.
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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 Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
