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 likely to meet or exceed Wall Street’s lofty expectations and two where its enthusiasm might be excessive.
Two Stocks to Sell:
AeroVironment (AVAV)
Consensus Price Target: $391.44 (48.7% implied return)
Focused on the future of autonomous military combat, AeroVironment (NASDAQ:AVAV) specializes in advanced unmanned aircraft systems and electric vehicle charging solutions.
Why Are We Hesitant About AVAV?
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 8.4 percentage points
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 9.9% annually while its revenue grew
- Free cash flow margin dropped by 19 percentage points over the last five years, implying the company became more capital intensive as competition picked up
At $263.25 per share, AeroVironment trades at 59.5x forward P/E. To fully understand why you should be careful with AVAV, check out our full research report (it’s free).
LendingTree (TREE)
Consensus Price Target: $81.33 (74.1% implied return)
Using the same comparison model that revolutionized travel booking, LendingTree (NASDAQ:TREE) operates an online platform that connects consumers with financial service providers across mortgages, personal loans, credit cards, insurance, and other financial products.
Why Should You Sell TREE?
- Flat sales over the last three years suggest it must innovate and find new ways to grow
- Anticipated sales growth of 8.5% for the next year implies demand will be shaky
- Excessive marketing spend signals little organic demand and traction for its platform
LendingTree’s stock price of $46.72 implies a valuation ratio of 7x forward EV/EBITDA. If you’re considering TREE for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Palantir Technologies (PLTR)
Consensus Price Target: $189.92 (35.9% implied return)
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ:PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Why Will PLTR Outperform?
- Billings growth has averaged 59.5% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Palantir Technologies is trading at $139.78 per share, or 50.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
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 9 Market-Beating Stocks. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.