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1 of Wall Street’s Favorite Stock with Impressive Fundamentals and 2 We Brush Off

DRVN Cover Image

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.

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:

Driven Brands (DRVN)

Consensus Price Target: $21.69 (42.4% implied return)

With approximately 5,000 locations across 49 U.S. states and 13 other countries, Driven Brands (NASDAQ: DRVN) operates a network of automotive service centers offering maintenance, car washes, paint, collision repair, and glass services across North America.

Why Should You Sell DRVN?

  1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
  3. 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Driven Brands is trading at $15.24 per share, or 11.8x forward P/E. If you’re considering DRVN for your portfolio, see our FREE research report to learn more.

AT&T (T)

Consensus Price Target: $30.78 (20.7% implied return)

Founded by Alexander Graham Bell, AT&T (NYSE: T) is a multinational telecomm conglomerate providing a range of communications and internet services.

Why Do We Pass on T?

  1. Products and services have few die-hard fans as sales have declined by 5.6% annually over the last five years
  2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
  3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 2.2 percentage points

AT&T’s stock price of $25.50 implies a valuation ratio of 11.8x forward P/E. Read our free research report to see why you should think twice about including T in your portfolio.

One Stock to Buy:

Payoneer (PAYO)

Consensus Price Target: $9.75 (57.5% implied return)

Founded during the early days of global e-commerce in 2005 to solve international payment challenges, Payoneer (NASDAQ: PAYO) provides financial technology services that enable small and medium-sized businesses to send and receive payments globally across borders.

Why Is PAYO a Good Business?

  1. Annual revenue growth of 25.6% over the last five years was superb and indicates its market share increased during this cycle
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 266% exceeded its revenue gains over the last two years

At $6.19 per share, Payoneer trades at 22.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

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 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-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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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