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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Etsy (ETSY)
Consensus Price Target: $66.89 (16.5% implied return)
Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NYSE:ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.
Why Are We Wary of ETSY?
- Active Buyers have stagnated over the last two years, indicating its platform may be struggling to differentiate itself from competitors
- Estimated sales growth of 2.8% for the next 12 months implies demand will slow from its three-year trend
- Earnings per share fell by 1.1% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable
Etsy’s stock price of $57.41 implies a valuation ratio of 12x forward EV/EBITDA. Read our free research report to see why you should think twice about including ETSY in your portfolio.
Fiverr (FVRR)
Consensus Price Target: $31.90 (102% implied return)
Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services.
Why Are We Hesitant About FVRR?
- Intense competition is diverting traffic from its platform as its active buyers fell by 9.4% annually
- Estimated sales growth of 5.4% for the next 12 months implies demand will slow from its three-year trend
- High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum
Fiverr is trading at $15.76 per share, or 1.2x forward EV/EBITDA. To fully understand why you should be careful with FVRR, check out our full research report (it’s free).
One Stock to Buy:
Sterling (STRL)
Consensus Price Target: $443.25 (10.3% implied return)
Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ:STRL) provides civil infrastructure construction.
Why Are We Backing STRL?
- Annual revenue growth of 9.4% over the last five years beat the sector average and underscores the unique value of its offerings
- Free cash flow margin expanded by 8.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital reflect management’s ability to monetize investments
At $402.00 per share, Sterling trades at 31.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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.