The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Wyndham (WH)
Consensus Price Target: $97.76 (36.2% implied return)
Established in 1981, Wyndham (NYSE: WH) is a global hotel franchising company with over 9,000 hotels across nearly 95 countries on six continents.
Why Are We Bearish on WH?
- Revenue per room has underperformed over the past two years, suggesting it may need to develop new facilities
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Wyndham’s stock price of $71.80 implies a valuation ratio of 14.7x forward P/E. Check out our free in-depth research report to learn more about why WH doesn’t pass our bar.
Supernus Pharmaceuticals (SUPN)
Consensus Price Target: $61.75 (41.9% implied return)
With a diverse portfolio of eight FDA-approved medications targeting neurological conditions, Supernus Pharmaceuticals (NASDAQ: SUPN) develops and markets treatments for central nervous system disorders including epilepsy, ADHD, Parkinson's disease, and migraine.
Why Is SUPN Risky?
- Annual revenue growth of 6.5% over the last five years was below our standards for the healthcare sector
- Smaller revenue base of $822.8 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Free cash flow margin shrank by 16.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $43.53 per share, Supernus Pharmaceuticals trades at 2.7x forward price-to-sales. Read our free research report to see why you should think twice about including SUPN in your portfolio.
One Stock to Watch:
MediaAlpha (MAX)
Consensus Price Target: $15.43 (30.8% implied return)
Powering nearly 10 million consumer referrals each month in the insurance marketplace, MediaAlpha (NYSE: MAX) operates a technology platform that connects insurance carriers with high-intent consumers shopping for property, casualty, health, and life insurance products.
Why Do We Like MAX?
- Impressive 57% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Adjusted operating margin expanded by 3.5 percentage points over the last five years as it scaled and became more efficient
- Earnings per share grew by 171% annually over the last two years, massively outpacing its peers
MediaAlpha is trading at $11.80 per share, or 9.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 meet 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
