In This Article:
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. Keeping that in mind, 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:
Jamf (JAMF)
Consensus Price Target: $21.70 (69.9% implied return)
Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.
Why Are We Cautious About JAMF?
-
Customers had second thoughts about committing to its platform over the last year as its average billings growth of 9% underwhelmed
-
Poor expense management has led to operating losses
-
Poor free cash flow margin of 3.5% for the last year limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $10.77 per share, Jamf trades at 2.1x forward price-to-sales. Read our free research report to see why you should think twice about including JAMF in your portfolio, it’s free.
Two Stocks to Watch:
Autodesk (ADSK)
Consensus Price Target: $335.21 (25.9% implied return)
Founded in 1982 by John Walker and growing into one of the industry's behemoths, Autodesk (NASDAQ:ADSK) makes computer-aided design (CAD) software for engineering, construction, and architecture companies.
Why Do We Like ADSK?
-
Billings growth has averaged 14.7% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
-
Superior software functionality and low servicing costs are reflected in its best-in-class gross margin of 92%
-
Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Autodesk is trading at $255.03 per share, or 8.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Nextracker (NXT)
Consensus Price Target: $51.87 (36.9% implied return)
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dabhi solar farm project, Nextracker (NASDAQ:NXT) is a provider of solar tracker systems that help solar panels follow the sun.