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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Coursera (COUR)
Consensus Price Target: $12.38 (46.7% implied return)
Founded by two Stanford University computer science professors, Coursera (NYSE: COUR) is an online learning platform that offers courses, specializations, and degrees from top universities and organizations around the world.
Why Do We Think Twice About COUR?
- Preference for prioritizing user growth over monetization has led to 7.3% annual drops in its average revenue per customer
- Estimated sales growth of 6% 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
Coursera is trading at $8.44 per share, or 20.4x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than COUR.
SAIC (SAIC)
Consensus Price Target: $115.63 (26.2% implied return)
With over five decades of experience supporting national security missions, Science Applications International Corporation (NASDAQ: SAIC) provides technical, engineering, and enterprise IT services primarily to U.S. government agencies and military branches.
Why Do We Think SAIC Will Underperform?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.5% annually over the last two years
- Forecasted revenue decline of 2.3% for the upcoming 12 months implies demand will fall even further
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2.5 percentage points
At $91.62 per share, SAIC trades at 10.7x forward P/E. To fully understand why you should be careful with SAIC, check out our full research report (it’s free for active Edge members).
One Stock to Buy:
United Parks & Resorts (PRKS)
Consensus Price Target: $50.64 (46.8% implied return)
Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE: PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.
Why Will PRKS Outperform?
- Annual revenue growth of 23.8% over the past five years was outstanding, reflecting market share gains
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 25.3%
- Share buybacks catapulted its annual earnings per share growth to 25.4%, which outperformed its revenue gains over the last five years
United Parks & Resorts’s stock price of $34.50 implies a valuation ratio of 6.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% 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
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