3 of Wall Street’s Favorite Stocks to Consider Right Now
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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here are three stocks where Wall Street’s excitement appears well-founded.
Vertex Pharmaceuticals (VRTX)
Consensus Price Target: $548.69 (21.1% implied return)
Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ:VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management.
Why Are We Fans of VRTX?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 13.8% annual sales growth over the last five years
- Robust free cash flow margin of 24.7% gives it many options for capital deployment
- ROIC punches in at 49.4%, illustrating management’s expertise in identifying profitable investments
At $452.99 per share, Vertex Pharmaceuticals trades at 23.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stryker (SYK)
Consensus Price Target: $387.23 (25.6% implied return)
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE:SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Are We Positive on SYK?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 9.2% over the past two years
- Earnings per share grew by 12.2% annually over the last five years, comfortably beating the peer group average
- Free cash flow margin jumped by 4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Stryker’s stock price of $308.42 implies a valuation ratio of 19.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Pathward Financial (CASH)
Consensus Price Target: $107.50 (31% implied return)
Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ:CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options.
Why Do We Love CASH?
- Annual net interest income growth of 13.2% over the last five years beat the sector average and underscores the value of its loans
- Strong performance of its loan book is reflected in its best-in-class net interest margin of 7.2%
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.3% exceeded its revenue gains over the last five years
Pathward Financial is trading at $82.05 per share, or 2x forward P/B. Is now the time to initiate a position? Find out 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
