Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two facing legitimate challenges.
Two Stocks to Sell:
Twilio (TWLO)
Consensus Price Target: $140.96 (-0.6% implied return)
Known for the clever "Twilio Magic" demo that had developers creating functioning communications apps in minutes, Twilio (NYSE:TWLO) provides a platform that enables businesses to communicate with their customers through voice, messaging, email, and other digital channels.
Why Are We Cautious About TWLO?
- Offerings struggled to generate meaningful interest as its average billings growth of 13.5% over the last year did not impress
- Estimated sales growth of 9.1% for the next 12 months is soft and implies weaker demand
- Bad unit economics and steep infrastructure costs are reflected in its gross margin of 49.4%, one of the worst among software companies
Twilio’s stock price of $141.85 implies a valuation ratio of 4.2x forward price-to-sales. Read our free research report to see why you should think twice about including TWLO in your portfolio.
Krispy Kreme (DNUT)
Consensus Price Target: $3.83 (-5.3% implied return)
Famous for its Original Glazed doughnuts and parent company of Insomnia Cookies, Krispy Kreme (NASDAQ:DNUT) is one of the most beloved and well-known fast-food chains in the world.
Why Do We Avoid DNUT?
- Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term
- Negative free cash flow raises questions about the return timeline for its investments
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $4.04 per share, Krispy Kreme trades at 16.3x forward EV-to-EBITDA. To fully understand why you should be careful with DNUT, check out our full research report (it’s free for active Edge members).
One Stock to Buy:
Evercore (EVR)
Consensus Price Target: $353.56 (3.9% implied return)
Founded in 1995 as a boutique advisory firm focused on independence and client trust, Evercore (NYSE:EVR) is an independent investment banking firm that provides strategic advisory, capital markets, and wealth management services to corporations, financial sponsors, and high-net-worth individuals.
Why Is EVR a Top Pick?
- Annual revenue growth of 19.5% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 27.1% annually, topping its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Evercore is trading at $340.25 per share, or 21x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.