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 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:
Constellation Brands (STZ)
Consensus Price Target: $216.29 (32.5% implied return)
With a presence in more than 100 countries, Constellation Brands (NYSE:STZ) is a globally renowned producer and marketer of beer, wine, and spirits.
Why Does STZ Worry Us?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Projected sales decline of 6.6% for the next 12 months points to a tough demand environment ahead
- Efficiency has decreased over the last year as its operating margin fell by 28.3 percentage points
Constellation Brands’s stock price of $163.20 implies a valuation ratio of 11.9x forward P/E. Dive into our free research report to see why there are better opportunities than STZ.
GE HealthCare (GEHC)
Consensus Price Target: $87.40 (18.3% implied return)
Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ:GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.
Why Are We Cautious About GEHC?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Anticipated sales growth of 3.7% for the next year implies demand will be shaky
- Incremental sales over the last three years were less profitable as its earnings per share were flat while its revenue grew
GE HealthCare is trading at $73.90 per share, or 15.1x forward P/E. To fully understand why you should be careful with GEHC, check out our full research report (it’s free).
One Stock to Watch:
Upwork (UPWK)
Consensus Price Target: $19.10 (39.8% implied return)
Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ:UPWK) is an online platform where businesses and independent professionals connect to get work done.
Why Are We Positive On UPWK?
- Monetization efforts are paying off as its average revenue per customer has grown by 8.3% annually over the last two years
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 395% over the last three years outstripped its revenue performance
- Free cash flow margin grew by 27 percentage points over the last few years, giving the company more chips to play with
At $13.66 per share, Upwork trades at 10.3x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today