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. 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:
America's Car-Mart (CRMT)
Consensus Price Target: $37 (66.8% implied return)
With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ: CRMT) sells used cars to budget-conscious consumers.
Why Do We Think CRMT Will Underperform?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Earnings per share fell by 74.7% annually over the last three years while its revenue grew, partly because it diluted shareholders
- 19× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
America's Car-Mart’s stock price of $22.18 implies a valuation ratio of 58.8x forward P/E. Check out our free in-depth research report to learn more about why CRMT doesn’t pass our bar.
Two Stocks to Watch:
TaskUs (TASK)
Consensus Price Target: $15.75 (50.3% implied return)
Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ: TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies.
Why Do We Like TASK?
- Annual revenue growth of 21.1% over the past five years was outstanding, reflecting market share gains this cycle
- Free cash flow margin expanded by 21.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
At $10.48 per share, TaskUs trades at 6.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Coastal Financial (CCB)
Consensus Price Target: $131.60 (54.8% implied return)
Pioneering the intersection of traditional banking and financial technology in the Pacific Northwest, Coastal Financial (NASDAQ: CCB) operates as a bank holding company that provides traditional banking services and Banking-as-a-Service (BaaS) solutions to consumers and businesses.
Why Will CCB Outperform?
- Annual net interest income growth of 40.1% over the past five years was outstanding, reflecting market share gains this cycle
- Differentiated product suite leads to a Strong performance of its loan book is reflected in its High-yielding loan book and low cost of funds lead to a best-in-class net interest margin of 7.1%
- Earnings per share have massively outperformed its peers over the last five years, increasing by 19.6% annually
Coastal Financial is trading at $85.03 per share, or 2.3x 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
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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.
