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. That said, here is one stock where Wall Street’s excitement appears well-founded and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Etsy (ETSY)
Consensus Price Target: $71.72 (23% implied return)
Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NYSE: ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.
Why Are We Hesitant About ETSY?
- Value proposition isn’t resonating strongly as its active buyers averaged 1.7% drops over the last two years
- Forecasted revenue decline of 2.3% for the upcoming 12 months implies demand will fall off a cliff
- Incremental sales over the last three years were less profitable as its earnings per share were flat while its revenue grew
Etsy’s stock price of $58.31 implies a valuation ratio of 10.6x forward EV/EBITDA. If you’re considering ETSY for your portfolio, see our FREE research report to learn more.
SS&C (SSNC)
Consensus Price Target: $94.78 (44.8% implied return)
Founded in 1986 as a bridge between technology and financial services, SS&C Technologies (NASDAQ: SSNC) provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes.
Why Do We Think Twice About SSNC?
- Efficiency has decreased over the last five years as its adjusted operating margin fell by 1.3 percentage points
- 2.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
SS&C is trading at $65.48 per share, or 9.2x forward P/E. Dive into our free research report to see why there are better opportunities than SSNC.
One Stock to Watch:
Ulta (ULTA)
Consensus Price Target: $681.50 (36.9% implied return)
Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ: ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.
Why Could ULTA Be a Winner?
- Fast expansion of new stores to reach markets with few or no locations is justified by its same-store sales growth
- Same-store sales growth averaged 3% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Industry-leading 32.7% return on capital demonstrates management’s skill in finding high-return investments
At $497.99 per share, Ulta trades at 17.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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.
