The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
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 likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Wix (WIX)
Consensus Price Target: $123.95 (38.2% 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 Does WIX Fall Short?
- Products, pricing, or go-to-market strategy may need some adjustments as its 13.1% average billings growth over the last year was weak
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 5.6 percentage points
- Projected 7.8 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
At $89.69 per share, Wix trades at 2.2x forward price-to-sales. Read our free research report to see why you should think twice about including WIX in your portfolio.
Service International (SCI)
Consensus Price Target: $97.83 (28.7% implied return)
Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.
Why Do We Think SCI Will Underperform?
- Sluggish trends in its funeral services performed suggest customers aren’t adopting its solutions as quickly as the company hoped
- Low free cash flow margin of 13.1% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Service International is trading at $76.00 per share, or 18.3x forward P/E. To fully understand why you should be careful with SCI, check out our full research report (it’s free).
One Stock to Watch:
Upwork (UPWK)
Consensus Price Target: $21.70 (90.4% 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?
- Customers are spending more money on its platform as its average revenue per customer has increased by 10.1% annually over the last two years
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 197% outpaced its revenue gains
- Robust free cash flow margin of 25.2% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
Upwork’s stock price of $11.40 implies a valuation ratio of 5.7x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
