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1 of Wall Street’s Favorite Stock with Impressive Fundamentals and 2 We Ignore

AMN Cover Image

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.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

AMN Healthcare Services (AMN)

Consensus Price Target: $22.21 (11% implied return)

With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE: AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States.

Why Should You Dump AMN?

  1. Declining travelers on assignment over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
  2. Earnings per share have dipped by 16.9% annually over the past five years, which is concerning because stock prices follow EPS over the long term
  3. Waning returns on capital imply its previous profit engines are losing steam

AMN Healthcare Services’s stock price of $20.01 implies a valuation ratio of 10x forward P/E. Check out our free in-depth research report to learn more about why AMN doesn’t pass our bar.

AdaptHealth (AHCO)

Consensus Price Target: $13 (39.5% implied return)

With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ: AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders.

Why Does AHCO Give Us Pause?

  1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
  2. Earnings per share fell by 6.4% annually over the last five years while its revenue grew, partly because it diluted shareholders
  3. Underwhelming 0.5% return on capital reflects management’s difficulties in finding profitable growth opportunities

AdaptHealth is trading at $9.32 per share, or 8.9x forward P/E. Dive into our free research report to see why there are better opportunities than AHCO.

One Stock to Buy:

Houlihan Lokey (HLI)

Consensus Price Target: $206.38 (24.3% implied return)

Founded in 1972 and known for its expertise in complex financial situations, Houlihan Lokey (NYSE: HLI) is a global investment bank specializing in mergers and acquisitions, capital markets, financial restructurings, and valuation advisory services.

Why Are We Backing HLI?

  1. Annual revenue growth of 20% over the past two years was outstanding, reflecting market share gains this cycle
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 34.9% over the last two years outstripped its revenue performance
  3. Impressive 34.3% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle

At $166.01 per share, Houlihan Lokey trades at 19.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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