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.
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 excitement appears well-founded and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Shutterstock (SSTK)
Consensus Price Target: $27.57 (43.4% implied return)
Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.
Why Do We Think Twice About SSTK?
- Preference for prioritizing user growth over monetization has led to 18.6% annual drops in its average revenue per request
- Estimated sales decline of 1% for the next 12 months implies a challenging demand environment
- Issuance of new shares over the last three years caused its earnings per share growth of 2.5% to lag its revenue gains
Shutterstock’s stock price of $19.23 implies a valuation ratio of 3x forward EV/EBITDA. To fully understand why you should be careful with SSTK, check out our full research report (it’s free for active Edge members).
Amdocs (DOX)
Consensus Price Target: $102.50 (28.7% implied return)
Powering the digital experiences of approximately 400 communications companies worldwide, Amdocs (NASDAQ:DOX) provides software and services that help telecommunications and media companies manage customer relationships, monetize services, and automate network operations.
Why Should You Sell DOX?
- Sales pipeline suggests its future revenue growth likely won’t meet our standards as its backlog hasn’t budged over the past two years
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.3%
- Free cash flow margin dropped by 2.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Amdocs is trading at $79.62 per share, or 10.6x forward P/E. Check out our free in-depth research report to learn more about why DOX doesn’t pass our bar.
One Stock to Watch:
Universal Display (OLED)
Consensus Price Target: $168.78 (43.4% implied return)
Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.
Why Could OLED Be a Winner?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 10.5% annual sales growth over the last five years
- Offerings are difficult to replicate at scale and result in a best-in-class gross margin of 75.3%
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 37.8%
At $117.70 per share, Universal Display trades at 22.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.