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 are two stocks where Wall Street’s excitement appears well-founded and one where consensus estimates seem disconnected from reality.
One Stock to Sell:
Gibraltar (ROCK)
Consensus Price Target: $82 (86.6% implied return)
Gibraltar (NASDAQ:ROCK) makes renewable energy, agriculture technology and infrastructure products. Its mission statement is to make everyday living more sustainable.
Why Does ROCK Worry Us?
- Sales tumbled by 7.4% annually over the last two years, showing market trends are working against its favor during this cycle
- Estimated sales growth of 4% for the next 12 months is soft and implies weaker demand
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 3.1% annually
Gibraltar’s stock price of $43.95 implies a valuation ratio of 9.8x forward P/E. Read our free research report to see why you should think twice about including ROCK in your portfolio.
Two Stocks to Buy:
Philip Morris (PM)
Consensus Price Target: $183.25 (17.4% implied return)
Founded in 1847, Philip Morris International (NYSE:PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.
Why Should You Buy PM?
- Unit sales averaged 3% growth over the past two years and imply healthy demand for its products
- Unique products and pricing power lead to a best-in-class gross margin of 65.6%
- Robust free cash flow margin of 26.1% gives it many options for capital deployment
At $156.15 per share, Philip Morris trades at 19.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Rocket Companies (RKT)
Consensus Price Target: $19.92 (21.1% implied return)
Born in Detroit during the 1980s and evolving into a tech-driven financial powerhouse, Rocket Companies (NYSE:RKT) is a fintech company that provides digital mortgage lending, real estate services, and personal finance solutions through its technology platform.
Why Is RKT a Good Business?
- Annual revenue growth of 25.3% over the past two years was outstanding, reflecting market share gains this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 74.8% outpaced its revenue gains
- Capital strength will likely rise over the next 12 months as its expected tangible book value per share growth of 426% is robust
Rocket Companies is trading at $16.45 per share, or 2.8x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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