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.
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:
BlackLine (BL)
Consensus Price Target: $55.23 (52.2% implied return)
Born from the vision to eliminate tedious manual spreadsheet work for accountants, BlackLine (NASDAQ: BL) provides cloud-based software that automates and streamlines financial close, intercompany accounting, and invoice-to-cash processes for accounting departments.
Why Are We Wary of BL?
- Average billings growth of 8.5% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Net revenue retention rate of 104% trails the industry benchmark of 110%+ and shows it has a tough time increasing customer spending
- Operating margin failed to increase over the last year, indicating the company couldn’t optimize its expenses
At $36.29 per share, BlackLine trades at 3.4x forward price-to-sales. If you’re considering BL for your portfolio, see our FREE research report to learn more.
LendingTree (TREE)
Consensus Price Target: $70.67 (73.4% implied return)
Using the same comparison model that revolutionized travel booking, LendingTree (NASDAQ: TREE) operates an online platform that connects consumers with financial service providers across mortgages, personal loans, credit cards, insurance, and other financial products.
Why Does TREE Give Us Pause?
- 4.3% annual revenue growth over the last three years was slower than its consumer internet peers
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
LendingTree’s stock price of $40.76 implies a valuation ratio of 5.8x forward EV/EBITDA. To fully understand why you should be careful with TREE, check out our full research report (it’s free).
One Stock to Watch:
Omnicom Group (OMC)
Consensus Price Target: $100.90 (34.5% implied return)
With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE: OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.
Why Does OMC Stand Out?
- Solid 8.4% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- Massive revenue base of $17.27 billion makes it a well-known name that influences purchasing decisions
- Free cash flow margin grew by 7.2 percentage points over the last five years, giving the company more chips to play with
Omnicom Group is trading at $75 per share, or 6.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
