Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Paramount (PSKY)
Consensus Price Target: $11.79 (36.8% implied return)
Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ: PSKY) is a major media conglomerate offering television, film production, and digital content across various global platforms.
Why Are We Out on PSKY?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 2.1% for the last five years
- Free cash flow margin is forecasted to shrink by 2.3 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Paramount is trading at $8.62 per share, or 11.4x forward P/E. Dive into our free research report to see why there are better opportunities than PSKY.
Novavax (NVAX)
Consensus Price Target: $14.11 (78.8% implied return)
Pioneering a nanoparticle technology that mimics the molecular structure of disease pathogens, Novavax (NASDAQ: NVAX) develops and commercializes protein-based vaccines for infectious diseases, with a primary focus on its COVID-19 vaccine and combination respiratory vaccine candidates.
Why Do We Think NVAX Will Underperform?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 22.6% annually over the last two years
- Projected sales decline of 50.7% over the next 12 months indicates demand will continue deteriorating
- Cash burn makes us question whether it can achieve sustainable long-term growth
At $7.89 per share, Novavax trades at 4.6x forward price-to-sales. Check out our free in-depth research report to learn more about why NVAX doesn’t pass our bar.
One Stock to Watch:
Gulfport Energy (GPOR)
Consensus Price Target: $236.64 (57.5% implied return)
With drilling operations focused on the Utica Shale in eastern Ohio and the SCOOP play in central Oklahoma, Gulfport Energy (NYSE: GPOR) drills for and produces natural gas from underground shale formations.
Why Does GPOR Stand Out?
- Impressive 9.2% annual revenue growth over the last ten years indicates it’s winning market share this cycle
- Highly-profitable operating model results in strong unit economics and a stellar gross margin of 69.6%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Gulfport Energy’s stock price of $150.24 implies a valuation ratio of 6.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
