Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, 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:
Casella Waste Systems (CWST)
Consensus Price Target: $117.23 (31.8% implied return)
Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ: CWST) offers waste management services for businesses, residents, and the government.
Why Are We Hesitant About CWST?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Efficiency has decreased over the last five years as its operating margin fell by 4.7 percentage points
- Underwhelming 6.1% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its falling returns suggest its earlier profit pools are drying up
At $88.98 per share, Casella Waste Systems trades at 82.5x forward P/E. To fully understand why you should be careful with CWST, check out our full research report (it’s free for active Edge members).
Pangaea (PANL)
Consensus Price Target: $8 (72.4% implied return)
Established in 1996, Pangaea Logistics (NASDAQ: PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes.
Why Do We Steer Clear of PANL?
- Annual revenue growth of 3.2% over the last two years was below our standards for the industrials sector
- Earnings per share fell by 41.1% annually over the last two years while its revenue grew, partly because it diluted shareholders
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Pangaea is trading at $4.64 per share, or 3.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than PANL.
One Stock to Buy:
Sprouts (SFM)
Consensus Price Target: $181.93 (75.2% implied return)
Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ: SFM) is a grocery store chain emphasizing natural and organic products.
Why Will SFM Outperform?
- Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance
- Same-store sales growth averaged 7.5% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Exciting sales outlook for the upcoming 12 months calls for 11.8% growth, an acceleration from its six-year trend
Sprouts’s stock price of $103.83 implies a valuation ratio of 18.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 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-micro-cap company Tecnoglass (+1,754% 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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