Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
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:
Commvault (CVLT)
Consensus Price Target: $210.78 (21.5% implied return)
Born from the need to create ironclad protection in an increasingly dangerous digital world, Commvault (NASDAQ:CVLT) provides data protection and cyber resilience software that helps organizations secure, back up, and recover their data across on-premises, hybrid, and multi-cloud environments.
Why Does CVLT Fall Short?
- Annual revenue growth of 9.1% over the last five years was well below our standards for the software sector
- Estimated sales growth of 13.2% for the next 12 months implies demand will slow from its two-year trend
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 1.1 percentage points
Commvault is trading at $173.46 per share, or 6.5x forward price-to-sales. To fully understand why you should be careful with CVLT, check out our full research report (it’s free for active Edge members).
Two Stocks to Watch:
Universal Display (OLED)
Consensus Price Target: $181.89 (24.2% implied return)
Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.
Why Does OLED Stand Out?
- Solid 12.4% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Superior product capabilities and pricing power lead to a best-in-class gross margin of 75.4%
- Excellent operating margin of 38.1% highlights the efficiency of its business model
Universal Display’s stock price of $146.50 implies a valuation ratio of 28.4x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Inspire Medical Systems (INSP)
Consensus Price Target: $125.07 (53.3% implied return)
Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE:INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.
Why Will INSP Outperform?
- Controlled growth in new domestic medical centersdomestic medical centers reflects a methodical approach to market expansion
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 22.5% annually
- Free cash flow margin jumped by 31.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $81.59 per share, Inspire Medical Systems trades at 101.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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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