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Wall Street expects these stocks to soar; Should you jump on board?

One of the first lessons I learned when I started investing was that you should always do your own homework before putting your money to work in a stock.

It is important to pay attention to what the experts have to say regarding a security, since they analyze the market for a living, but you should always follow up their research with a little work of your own.

Analyst recommendations and price targets offer a good insight for the average investor. If you see a large number of analysts rating a stock as a “strong buy”, it provides a good reason to dig deeper into the stock to determine if it is worth adding to your portfolio. The same can be said for a stock’s price target.

We are going to take a look at five stocks that are currently trading at least 20% below the street’s average price target, and dig a little deeper to decide whether or not now would be a good time to jump into the stock and expect a nice uptick.

In a couple cases, there is enough information to justify building a position in the stock, but that will not be the case with every stock in our list, with three of the five stocks looking a bit too risky even at their current price.

As always, be sure to do your own homework before jumping into any of the following stocks.

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Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.