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 positive outlook is supported by strong fundamentals and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Mattel (MAT)
Consensus Price Target: $18.71 (28.3% implied return)
Known for the creation of iconic toys such as Barbie and Hotwheels, Mattel (NASDAQ: MAT) is a global children's entertainment company specializing in the design and production of consumer products.
Why Should You Sell MAT?
- Lackluster 2% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Low free cash flow margin of 8.5% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Mattel is trading at $14.59 per share, or 11.1x forward P/E. To fully understand why you should be careful with MAT, check out our full research report (it’s free).
Jacobs Solutions (J)
Consensus Price Target: $158.27 (28.9% implied return)
With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE: J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions.
Why Is J Risky?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.2% annually over the last five years
- Earnings per share have contracted by 6.8% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- ROIC of 8% reflects management’s challenges in identifying attractive investment opportunities
At $122.80 per share, Jacobs Solutions trades at 16.3x forward P/E. If you’re considering J for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Braze (BRZE)
Consensus Price Target: $34.40 (56.3% implied return)
With its technology powering interactions with 6.2 billion monthly active users across the digital landscape, Braze (NASDAQ: BRZE) provides a platform that helps brands build and maintain direct relationships with their customers through personalized, cross-channel messaging and engagement.
Why Do We Like BRZE?
- Billings growth has averaged 32.1% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Estimated revenue growth of 18.6% for the next 12 months implies its momentum over the last two years will continue
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Braze’s stock price of $22.01 implies a valuation ratio of 2.6x forward price-to-sales. Is now a good time to buy? 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.
