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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here is one stock where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Omnicell (OMCL)
Consensus Price Target: $54.14 (64.9% implied return)
Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ:OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency.
Why Do We Think OMCL Will Underperform?
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Sales tumbled by 7.4% annually over the last two years, showing market trends are working against its favor during this cycle
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Earnings per share fell by 9.6% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
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Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Omnicell’s stock price of $30.76 implies a valuation ratio of 17.2x forward price-to-earnings. If you’re considering OMCL for your portfolio, see our FREE research report to learn more .
ANI Pharmaceuticals (ANIP)
Consensus Price Target: $78.67 (17.3% implied return)
With a diverse portfolio of 116 pharmaceutical products and a growing rare disease platform, ANI Pharmaceuticals (NASDAQ:ANIP) develops, manufactures, and markets branded and generic prescription pharmaceuticals, with a focus on rare disease treatments.
Why Does ANIP Fall Short?
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Smaller revenue base of $614.4 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
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Performance over the past five years was negatively impacted by new share issuances as its earnings per share were flat while its revenue grew
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Negative returns on capital show management lost money while trying to expand the business
At $69.82 per share, ANI Pharmaceuticals trades at 13.2x forward price-to-earnings. Read our free research report to see why you should think twice about including ANIP in your portfolio, it’s free .
One Stock to Buy:
Tecnoglass (TGLS)
Consensus Price Target: $89.67 (16.2% implied return)
The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE:TGLS) is a manufacturer of architectural glass, windows, and aluminum products.
Why Do We Love TGLS?
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Annual revenue growth of 15.6% over the last five years was superb and indicates its market share increased during this cycle
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Excellent operating margin of 27% highlights the efficiency of its business model, and its profits increased over the last five years as it scaled
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Earnings per share have massively outperformed its peers over the last five years, increasing by 39.8% annually
Tecnoglass is trading at $72 per share, or 17x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our full research report, it’s free .
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week . 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 Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free .