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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
RingCentral (RNG)
Consensus Price Target: $32.82 (25.6% implied return)
Built on its proprietary Message Video Phone (MVP) platform that unifies multiple communication methods, RingCentral (NYSE: RNG) provides AI-driven cloud communications and collaboration solutions that enable businesses to connect through voice, video, messaging, and contact center services.
Why Do We Avoid RNG?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 4.2% underwhelmed
- Estimated sales growth of 4.5% for the next 12 months implies demand will slow from its two-year trend
- Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment
RingCentral’s stock price of $26.13 implies a valuation ratio of 0.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than RNG.
Home Depot (HD)
Consensus Price Target: $431.58 (29.4% implied return)
Founded and headquartered in Atlanta, Georgia, Home Depot (NYSE: HD) is a home improvement retailer that sells everything from tools to building materials to appliances.
Why Are We Wary of HD?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Gross margin of 33.4% is below its competitors, leaving less money for marketing and promotions
- Capital intensity has ramped up over the last year as its free cash flow margin decreased by 2.4 percentage points
At $333.50 per share, Home Depot trades at 21.4x forward P/E. Read our free research report to see why you should think twice about including HD in your portfolio.
One Stock to Watch:
Webster Financial (WBS)
Consensus Price Target: $70.76 (26.8% implied return)
Founded during the Great Depression in 1935 and evolving into a major Northeastern financial institution, Webster Financial (NYSE: WBS) is a bank holding company that provides commercial banking, consumer banking, and employee benefits solutions through its Webster Bank and HSA Bank division.
Why Are We Fans of WBS?
- Annual net interest income growth of 22.3% over the past five years was outstanding, reflecting market share gains this cycle
- Efficiency ratio improved by 13.7 percentage points over the last five years as it scaled
- Earnings per share have massively outperformed its peers over the last five years, increasing by 16.8% annually
Webster Financial is trading at $55.80 per share, or 1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 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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