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2 of Wall Street’s Favorite Stocks on Our Watchlist and 1 We Turn Down

TEAM Cover Image

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.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where its enthusiasm might be excessive.

One Stock to Sell:

OPENLANE (OPLN)

Consensus Price Target: $33.56 (25.2% implied return)

Facilitating the sale of approximately 1.3 million used vehicles in 2023, OPENLANE (NYSE: OPLN) operates digital marketplaces that connect sellers and buyers of used vehicles across North America and Europe, facilitating wholesale transactions.

Why Does OPLN Fall Short?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.4% annually over the last five years
  2. 6.6 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
  3. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

OPENLANE is trading at $26.82 per share, or 20.5x forward P/E. Dive into our free research report to see why there are better opportunities than OPLN.

Two Stocks to Watch:

Atlassian (TEAM)

Consensus Price Target: $168.93 (148% implied return)

Started by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ: TEAM) provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.

Why Could TEAM Be a Winner?

  1. Annual revenue growth of 21.6% over the last two years was superb and indicates its market share is rising
  2. Software is difficult to replicate at scale and results in a top-tier gross margin of 84.1%
  3. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently

At $68.18 per share, Atlassian trades at 2.5x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Urban Outfitters (URBN)

Consensus Price Target: $83.25 (34% implied return)

Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ: URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.

Why Does URBN Stand Out?

  1. New store openings and solid same-store sales performance have boosted its top-line growth
  2. Same-store sales growth averaged 4.6% over the past two years, showing it’s bringing new and repeat shoppers into its stores
  3. Share repurchases over the last three years enabled its annual earnings per share growth of 47.3% to outpace its revenue gains

Urban Outfitters’s stock price of $62.15 implies a valuation ratio of 10.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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