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. Keeping that in mind, here are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where consensus estimates seem disconnected from reality.
One Stock to Sell:
Sweetgreen (SG)
Consensus Price Target: $12.63 (54.9% implied return)
Founded in 2007 by three Georgetown University alum, Sweetgreen (NYSE: SG) is a casual quick service chain known for its healthy salads and bowls.
Why Does SG Fall Short?
- Historical operating margin losses point to an inefficient cost structure
- Free cash flow margin dropped by 7.3 percentage points over the last year, implying the company became more capital intensive as competition picked up
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Sweetgreen is trading at $8.15 per share, or 40.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than SG.
Two Stocks to Watch:
Fiverr (FVRR)
Consensus Price Target: $31.90 (38.5% implied return)
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Why Does FVRR Stand Out?
- Customers are spending more money on its platform as its average revenue per buyer has increased by 20.5% annually over the last two years
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 59.8% annually, topping its revenue gains
- Free cash flow margin expanded by 13 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Fiverr’s stock price of $23.04 implies a valuation ratio of 9.1x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Copart (CPRT)
Consensus Price Target: $56 (21.7% implied return)
Starting as a single salvage yard in California in 1982, Copart (NASDAQ: CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.
Why Will CPRT Beat the Market?
- Market share has increased this cycle as its 16.1% annual revenue growth over the last five years was exceptional
- Additional sales over the last five years increased its profitability as the 20% annual growth in its earnings per share outpaced its revenue
- Robust free cash flow margin of 23.3% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety
At $46 per share, Copart trades at 27.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
