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 likely to meet or exceed Wall Street’s lofty expectations and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Universal Technical Institute (UTI)
Consensus Price Target: $37.60 (48.2% implied return)
Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians.
Why Is UTI Risky?
- Estimated sales growth of 9.1% for the next 12 months implies demand will slow from its two-year trend
- ROIC of 11.5% reflects management’s challenges in identifying attractive investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Universal Technical Institute’s stock price of $25.37 implies a valuation ratio of 11.4x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than UTI.
Revvity (RVTY)
Consensus Price Target: $116.81 (35.3% implied return)
Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE: RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.
Why Are We Out on RVTY?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Adjusted operating margin declined by 9.9 percentage points over the last five years as its sales cratered
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Revvity is trading at $86.35 per share, or 16.2x forward P/E. If you’re considering RVTY for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Deckers (DECK)
Consensus Price Target: $129.28 (27.5% implied return)
Established in 1973, Deckers (NYSE: DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands.
Why Do We Like DECK?
- Constant currency growth averaged 18.2% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- Free cash flow margin is on track to jump by 2.3 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Improving returns on capital reflect management’s ability to monetize investments
At $101.43 per share, Deckers trades at 16.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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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