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 is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Wix (WIX)
Consensus Price Target: $206.57 (41.8% implied return)
Powering over 263 million registered users worldwide with its AI-driven tools, Wix (NASDAQ: WIX) provides a cloud-based platform that helps individuals and businesses create and manage professional websites without requiring coding skills.
Why Do We Think Twice About WIX?
- Average billings growth of 14% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- High servicing costs result in a relatively inferior gross margin of 68.4% that must be offset through increased usage
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
Wix is trading at $145.65 per share, or 4.1x forward price-to-sales. To fully understand why you should be careful with WIX, check out our full research report (it’s free for active Edge members).
BJ's (BJRI)
Consensus Price Target: $38.14 (14.6% implied return)
Founded in 1978 in California, BJ’s Restaurants (NASDAQ: BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.
Why Are We Out on BJRI?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Gross margin of 14.7% reflects the bad unit economics inherent in most restaurant businesses
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $33.29 per share, BJ's trades at 14.9x forward P/E. Check out our free in-depth research report to learn more about why BJRI doesn’t pass our bar.
One Stock to Buy:
Euronet Worldwide (EEFT)
Consensus Price Target: $117.43 (54.8% implied return)
Operating a global network of over 47,000 ATMs and 821,000 point-of-sale terminals across more than 60 countries, Euronet Worldwide (NASDAQ: EEFT) provides electronic payment solutions including ATM services, prepaid product processing, and international money transfer services.
Why Is EEFT a Top Pick?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 11.1% annual sales growth over the last five years
- Share repurchases over the last five years enabled its annual earnings per share growth of 23% to outpace its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Euronet Worldwide’s stock price of $75.86 implies a valuation ratio of 7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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-small-cap company Exlservice (+354% 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
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