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. That said, here are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where analysts may be overlooking some important risks.
One Stock to Sell:
Camping World (CWH)
Consensus Price Target: $17.58 (28.4% implied return)
Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE:CWH) still sells RVs along with boats and general merchandise for outdoor activities.
Why Should You Sell CWH?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Sales were less profitable over the last three years as its earnings per share fell by 58.4% annually, worse than its revenue declines
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $13.69 per share, Camping World trades at 17.7x forward P/E. Dive into our free research report to see why there are better opportunities than CWH.
Two Stocks to Watch:
Cadence Design Systems (CDNS)
Consensus Price Target: $381.32 (20.2% implied return)
Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ:CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.
Why Could CDNS Be a Winner?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 21.8% over the last year
- Superior software functionality and low servicing costs are reflected in its best-in-class gross margin of 86.6%
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Cadence Design Systems is trading at $317.37 per share, or 15.3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Zoetis (ZTS)
Consensus Price Target: $158.22 (26.1% implied return)
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Why Do We Like ZTS?
- Share buybacks propelled its annual earnings per share growth to 10.5%, which outperformed its revenue gains over the last five years
- Strong free cash flow margin of 21.4% enables it to reinvest or return capital consistently
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Zoetis’s stock price of $125.47 implies a valuation ratio of 19x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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).
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