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 where Wall Street’s excitement appears well-founded and one where its enthusiasm might be excessive.

One Stock to Sell:

Spectrum Brands (SPB)

Consensus Price Target: $99 (27.5% implied return)

A leader in multiple consumer product categories, Spectrum Brands (NYSE:SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.

Why Do We Think SPB Will Underperform?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
3. ROIC of 1% reflects management’s challenges in identifying attractive investment opportunities

Spectrum Brands’s stock price of $77.63 implies a valuation ratio of 14.3x forward P/E. Dive into our free research report to see why there are better opportunities than SPB.

Two Stocks to Watch:

Casella Waste Systems (CWST)

Consensus Price Target: $109.60 (30.4% implied return)

Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ:CWST) offers waste management services for businesses, residents, and the government.

Why Does CWST Catch Our Eye?

1. Market share has increased this cycle as its 16.9% annual revenue growth over the last two years was exceptional
2. Estimated revenue growth of 12.2% for the next 12 months implies its momentum over the last two years will continue
3. Earnings per share grew by 38.3% annually over the last two years, massively outpacing its peers

Casella Waste Systems is trading at $84.06 per share, or 67.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

CoreCivic (CXW)

Consensus Price Target: $41.80 (30.9% implied return)

Originally founded in 1983 as the first private prison company in the United States, CoreCivic (NYSE:CXW) operates correctional facilities, detention centers, and residential reentry programs for government agencies across the United States.

Why Could CXW Be a Winner?

1. Annual revenue growth of 12.4% over the past two years was outstanding, reflecting market share gains this cycle
2. Projected revenue growth of 15.1% for the next 12 months is above its two-year trend, pointing to accelerating demand
3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 25.4% exceeded its revenue gains over the last two years

At $31.93 per share, CoreCivic trades at 15.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.