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.
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:
Sabre (SABR)
Consensus Price Target: $1.99 (27.7% implied return)
Originally a division of American Airlines, Sabre (NASDAQ: SABR) is a technology provider for the global travel and tourism industry.
Why Is SABR Risky?
- Demand for its offerings was relatively low as its number of total bookings has underwhelmed
- Cash burn makes us question whether it can achieve sustainable long-term growth
- High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $1.56 per share, Sabre trades at 6.8x forward EV-to-EBITDA. To fully understand why you should be careful with SABR, check out our full research report (it’s free).
Atlanticus Holdings (ATLC)
Consensus Price Target: $104 (25.2% implied return)
Using data analytics to serve the millions of Americans with less-than-perfect credit scores, Atlanticus Holdings (NASDAQ: ATLC) provides technology and services that help lenders offer credit products to consumers often overlooked by traditional financing providers.
Why Are We Wary of ATLC?
- Earnings per share have dipped by 3.1% annually over the past four years, which is concerning because stock prices follow EPS over the long term
- 32× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Atlanticus Holdings is trading at $83.10 per share, or 7.9x forward P/E. Dive into our free research report to see why there are better opportunities than ATLC.
One Stock to Watch:
RB Global (RBA)
Consensus Price Target: $127.73 (22% implied return)
Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE: RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.
Why Do We Like RBA?
- Market share has increased this cycle as its 26.9% annual revenue growth over the last five years was exceptional
- Adjusted operating margin expanded by 2.6 percentage points over the last five years as it scaled and became more efficient
- Earnings per share grew by 19.1% annually over the last five years and trumped its peers
RB Global’s stock price of $104.72 implies a valuation ratio of 22.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
