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. That said, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
USANA (USNA)
Consensus Price Target: $39 (124% implied return)
Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE: USNA) manufactures and sells nutritional, personal care, and skincare products.
Why Are We Wary of USNA?
- Annual sales declines of 2.5% for the past three years show its products struggled to connect with the market
- Smaller revenue base of $925.3 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
USANA is trading at $17.40 per share, or 8.5x forward P/E. Read our free research report to see why you should think twice about including USNA in your portfolio.
Parsons (PSN)
Consensus Price Target: $80.82 (54.1% implied return)
Delivering aerospace technology during the Cold War-era, Parsons (NYSE: PSN) offers engineering, construction, and cybersecurity solutions for the infrastructure and defense sectors.
Why Does PSN Worry Us?
- Estimated sales growth of 5.1% for the next 12 months implies demand will slow from its two-year trend
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- ROIC of 6.8% reflects management’s challenges in identifying attractive investment opportunities
At $52.45 per share, Parsons trades at 15.2x forward P/E. Check out our free in-depth research report to learn more about why PSN doesn’t pass our bar.
One Stock to Buy:
NerdWallet (NRDS)
Consensus Price Target: $14.50 (42.3% implied return)
Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet (NASDAQ: NRDS) is a digital platform that provides financial guidance to help consumers and small businesses make smarter decisions about credit cards, loans, insurance, and other financial products.
Why Will NRDS Beat the Market?
- Annual revenue growth of 27.8% over the last five years was superb and indicates its market share increased during this cycle
- Share buybacks catapulted its annual earnings per share growth to 252%, which outperformed its revenue gains over the last two years
NerdWallet’s stock price of $10.19 implies a valuation ratio of 7.2x forward P/E. Is now the right time to buy? See for yourself in our full 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
