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.
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 where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Bloomin' Brands (BLMN)
Consensus Price Target: $7.35 (35.9% implied return)
Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ: BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Why Do We Pass on BLMN?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Lacking pricing power results in an inferior gross margin of 15.7% that must be offset by turning more tables
Bloomin' Brands’s stock price of $5.41 implies a valuation ratio of 6.2x forward P/E. Check out our free in-depth research report to learn more about why BLMN doesn’t pass our bar.
Matthews (MATW)
Consensus Price Target: $38 (47.2% implied return)
Originally a death care company, Matthews International (NASDAQ: MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies.
Why Is MATW Risky?
- Annual sales declines of 1.9% for the past five years show its products and services struggled to connect with the market
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $25.82 per share, Matthews trades at 0.6x trailing 12-month price-to-sales. Dive into our free research report to see why there are better opportunities than MATW.
One Stock to Watch:
Gevo (GEVO)
Consensus Price Target: $5.50 (103% implied return)
Operating one of the largest dairy-based renewable natural gas facilities in the United States, Gevo (NASDAQ: GEVO) produces sustainable aviation fuel and other renewable hydrocarbon fuels from plant-based feedstocks like corn.
Why Are We Positive On GEVO?
- Market share has increased this cycle as its 18.2% annual revenue growth over the last ten years was exceptional
- EBITDA profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
Gevo is trading at $2.72 per share, or 19.3x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.
