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.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, 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:

First Watch (FWRG)

Consensus Price Target: $22.18 (44.3% implied return)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ: FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

Why Is FWRG Not Exciting?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
2. Cash-burning history and the downward spiral in its margin profile make us wonder if it has a viable business model
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

First Watch is trading at $15.37 per share, or 55.2x forward P/E. Read our free research report to see why you should think twice about including FWRG in your portfolio.

Tandem Diabetes (TNDM)

Consensus Price Target: $26.14 (38% implied return)

With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ: TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels.

Why Do We Avoid TNDM?

1. Earnings per share fell by 18.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
2. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
3. EBITDA losses may force it to accept punitive lending terms or high-cost debt

Tandem Diabetes’s stock price of $18.95 implies a valuation ratio of 27.5x forward EV-to-EBITDA. To fully understand why you should be careful with TNDM, check out our full research report (it’s free).

One Stock to Watch:

Intuitive Surgical (ISRG)

Consensus Price Target: $611.82 (26.3% implied return)

Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.

Why Is ISRG Interesting?

1. Market share has increased this cycle as its 18.9% annual revenue growth over the last two years was exceptional
2. Forecasted revenue growth of 14.2% for the next 12 months indicates its momentum over the last two years is sustainable
3. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 21.4% annually

At $484.25 per share, Intuitive Surgical trades at 47.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. 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.