Skip to main content

1 of Wall Street’s Favorite Stock on Our Watchlist and 2 We Question

CRM Cover Image

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.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.

Two Stocks to Sell:

Salesforce (CRM)

Consensus Price Target: $329.65 (45% implied return)

With its cloud-based platform named after its stock ticker symbol CRM (Customer Relationship Management), Salesforce (NYSE: CRM) provides customer relationship management software that helps businesses connect with their customers across sales, service, marketing, and commerce.

Why Are We Cautious About CRM?

  1. Underwhelming ARR growth of 9.1% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 11.8%
  3. Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage

At $227.28 per share, Salesforce trades at 4.9x forward price-to-sales. Check out our free in-depth research report to learn more about why CRM doesn’t pass our bar.

IMAX (IMAX)

Consensus Price Target: $43.73 (16.9% implied return)

Originally developed for World Expo '67 in Montreal as an innovative projection system, IMAX (NYSE: IMAX) provides proprietary large-format cinema technology and systems that deliver immersive movie experiences with enhanced image quality and sound.

Why Do We Think Twice About IMAX?

  1. Annual sales declines of 1.2% for the past two years show its products and services struggled to connect with the market during this cycle
  2. Smaller revenue base of $377.7 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

IMAX’s stock price of $37.42 implies a valuation ratio of 23x forward P/E. Read our free research report to see why you should think twice about including IMAX in your portfolio.

One Stock to Watch:

Capital One (COF)

Consensus Price Target: $280.48 (17.6% implied return)

Starting as a credit card company in 1988 before expanding into a full-service bank, Capital One (NYSE: COF) is a financial services company that offers credit cards, auto loans, banking services, and commercial lending to consumers and businesses.

Why Could COF Be a Winner?

  1. Annual revenue growth of 15.2% over the past two years was outstanding, reflecting market share gains this cycle
  2. Additional sales over the last five years increased its profitability as the 44.9% annual growth in its earnings per share outpaced its revenue
  3. ROE of 10.9% shows management can invest its resources competently

Capital One is trading at $238.46 per share, or 11.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  230.81
-8.31 (-3.48%)
AAPL  244.29
-11.24 (-4.40%)
AMD  232.25
+0.42 (0.18%)
BAC  52.09
-0.88 (-1.67%)
GOOG  321.46
-8.88 (-2.69%)
META  604.09
-16.16 (-2.61%)
MSFT  455.15
-4.71 (-1.02%)
NVDA  178.73
-7.50 (-4.03%)
ORCL  180.33
-10.76 (-5.63%)
TSLA  418.85
-18.65 (-4.26%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.