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 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:

Figs (FIGS)

Consensus Price Target: $5.72 (11.2% implied return)

Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE:FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.

Why Are We Cautious About FIGS?

1. Number of active customers has disappointed over the past two years, indicating weak demand for its offerings
2. Forecasted revenue decline of 1.8% for the upcoming 12 months implies demand will fall off a cliff
3. Negative returns on capital show that some of its growth strategies have backfired

Figs is trading at $4.47 per share, or 49.1x forward price-to-earnings. If you’re considering FIGS for your portfolio, see our FREE research report to learn more.

Steelcase (SCS)

Consensus Price Target: $16.50 (62.1% implied return)

Founded in 1912 when metal office furniture was replacing wooden alternatives, Steelcase (NYSE:SCS) is a global office furniture manufacturer that designs and produces workplace solutions including desks, chairs, architectural products, and services.

Why Should You Sell SCS?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.2% annually over the last five years
2. Earnings per share have contracted by 5.8% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
3. ROIC of 6.4% reflects management’s challenges in identifying attractive investment opportunities

At $10.18 per share, Steelcase trades at 9.3x forward price-to-earnings. Check out our free in-depth research report to learn more about why SCS doesn’t pass our bar.

One Stock to Buy:

Nvidia (NVDA)

Consensus Price Target: $172.68 (46.4% implied return)

Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.

Why Is NVDA a Top Pick?

1. Impressive 120% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Additional sales over the last five years increased its profitability as the 83.3% annual growth in its earnings per share outpaced its revenue
3. Strong free cash flow margin of 45.9% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety

Nvidia’s stock price of $114.57 implies a valuation ratio of 25.3x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Broadcom (+634% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.