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 are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where analysts may be overlooking some important risks.
One Stock to Sell:
Tecnoglass (TGLS)
Consensus Price Target: $74 (64.7% implied return)
The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE: TGLS) is a manufacturer of architectural glass, windows, and aluminum products.
Why Does TGLS Fall Short?
- Annual revenue growth of 7.3% over the last two years was below our standards for the industrials sector
- Earnings per share have dipped by 3.2% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- 10.4 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
Tecnoglass’s stock price of $44.94 implies a valuation ratio of 11.5x forward P/E. If you’re considering TGLS for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Domino's (DPZ)
Consensus Price Target: $498.26 (20.7% implied return)
Founded by two brothers in Michigan, Domino’s (NYSE: DPZ) is a globally recognized pizza chain known for its creative marketing and fast delivery.
Why Is DPZ Interesting?
- Fast expansion of new restaurants to reach markets with few or no locations is justified by its same-store sales growth
- Free cash flow margin jumped by 2.3 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Industry-leading 93.8% return on capital demonstrates management’s skill in finding high-return investments
Domino's is trading at $412.68 per share, or 21.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
DexCom (DXCM)
Consensus Price Target: $84.96 (46.2% implied return)
Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ: DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.
Why Should You Buy DXCM?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 16.8% over the past two years
- Earnings per share grew by 17.5% annually over the last five years, massively outpacing its peers
- Free cash flow margin grew by 17.5 percentage points over the last five years, giving the company more chips to play with
At $58.10 per share, DexCom trades at 25.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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-small-cap company Exlservice (+354% 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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