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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here is one stock where Wall Street’s excitement appears well-founded and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Shake Shack (SHAK)
Consensus Price Target: $110.91 (14.7% implied return)
Started as a hot dog cart in New York City's Madison Square Park, Shake Shack (NYSE:SHAK) is a fast-food restaurant known for its burgers and milkshakes.
Why Do We Think Twice About SHAK?
- Operating margin of 1.8% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Earnings per share lagged its peers over the last six years as they only grew by 8.9% annually
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Shake Shack is trading at $96.73 per share, or 73.1x forward P/E. Read our free research report to see why you should think twice about including SHAK in your portfolio.
Array (AD)
Consensus Price Target: $59.50 (21.5% implied return)
Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, Array (NYSE:Array) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services.
Why Do We Avoid AD?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 6.8% annually over the last five years
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- ROIC of 0.7% reflects management’s challenges in identifying attractive investment opportunities, and its falling returns suggest its earlier profit pools are drying up
At $48.97 per share, Array trades at 23.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why AD doesn’t pass our bar.
One Stock to Buy:
EXL (EXLS)
Consensus Price Target: $52.14 (67.7% implied return)
Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ:EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.
Why Are We Bullish on EXLS?
- Annual revenue growth of 16% over the past five years was outstanding, reflecting market share gains this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 24.4% exceeded its revenue gains over the last five years
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
EXL’s stock price of $31.09 implies a valuation ratio of 15.2x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.