2 of Wall Street’s Favorite Stocks for Long-Term Investors and 1 That Underwhelm
2 of Wall Street’s Favorite Stocks for Long-Term Investors and 1 That Underwhelm Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover. 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 are two stocks likely to meet or exceed Wall Street’s lofty expectations and one where analysts may be overlooking some important risks. One Stock to Sell: Antero Resources (AR) Consensus Price Target: $50.29 (48.9% implied return) Holding roughly 521,000 net acres across West Virginia, Ohio, and Pennsylvania, Antero Resources (NYSE:AR) drills and produces natural gas, natural gas liquids, and oil from underground rock formations in the Appalachian Basin. Why Does AR Fall Short? 5.8% annual revenue growth over the last five years was slower than its energy upstream and integrated energy peers Expenses have increased as a percentage of revenue over the last five years as its EBITDA margin fell by 10 percentage points Antero Resources is trading at $33.78 per share, or 8.3x forward P/E. If you’re considering AR for your portfolio, see our FREE research report to learn more. Two Stocks to Watch: McDonald’s (MCD) Consensus Price Target: $298.86 (27.6% implied return) With nicknames spanning Mickey D’s in the U.S. to Makku in Japan, McDonald’s (NYSE:MCD) is a fast-food behemoth known for its convenience and broken ice cream machines. Why Could MCD Be a Winner? Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth Asset-lite franchise model is reflected in its superior unit economics and a best-in-class gross margin of 57.2% MCD is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business At $234.16 per share, McDonald’s trades at 17.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free. Badger Meter (BMI) Consensus Price Target: $156.67 (24.5% implied return) The developer of the world’s first frost-proof water meter in 1905, Badger Meter (NYSE:BMI) provides water control and measure equipment to various industries. Why Will BMI Beat the Market? Annual revenue growth of 13.6% over the last five years was superb and indicates its market share increased during this cycle Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 17.5% outpaced its revenue gains Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute Badger Meter’s stock price of $125.79 implies a valuation ratio of 26.4x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free. Stocks We Like Even More ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.