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 likely to meet or exceed Wall Street’s lofty expectations and one where analysts may be overlooking some important risks.
One Stock to Sell:
Caleres (CAL)
Consensus Price Target: $19 (84% implied return)
The owner of Dr. Scholl's, Caleres (NYSE:CAL) is a footwear company offering a range of styles.
Why Should You Dump CAL?
- Sales tumbled by 3.6% annually over the last two years, showing consumer trends are working against its favor
- Poor free cash flow margin of 2% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $10.33 per share, Caleres trades at 5x forward P/E. Check out our free in-depth research report to learn more about why CAL doesn’t pass our bar.
Two Stocks to Buy:
Wingstop (WING)
Consensus Price Target: $318.04 (35.8% implied return)
The passion project of two chicken wing aficionados in Texas, Wingstop (NASDAQ:WING) is a popular fast-food chain known for its flavorful and crispy chicken wings offered in a variety of sauces and seasonings.
Why Do We Love WING?
- Same-store sales growth averaged 11.9% over the past two years, showing it’s bringing new and repeat diners into its restaurants
- Excellent operating margin of 25.7% highlights the efficiency of its business model
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Wingstop is trading at $234.16 per share, or 52.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
UMB Financial (UMBF)
Consensus Price Target: $137.69 (26.9% implied return)
With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ:UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.
Why Will UMBF Outperform?
- Annual net interest income growth of 17.8% over the last five years was superb and indicates its market share increased during this cycle
- Productivity and efficiency ratio profits are expected to increase next year as some fixed cost leverage kicks in
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 16.3% annually
UMB Financial’s stock price of $108.47 implies a valuation ratio of 1.1x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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