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1 of Wall Street’s Favorite Stock with Exciting Potential and 2 to Avoid

MNDY Cover Image

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.

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 where Wall Street’s excitement appears well-founded and two where its enthusiasm might be excessive.

Two Stocks to Sell:

Altice (ATUS)

Consensus Price Target: $2.92 (24.6% implied return)

Based in Long Island City, Altice USA (NYSE: ATUS) is a telecommunications company offering cable, internet, telephone, and television services across the United States.

Why Do We Pass on ATUS?

  1. Performance surrounding its broadband subscribers has lagged its peers
  2. Sales were less profitable over the last five years as its earnings per share fell by 27.4% annually, worse than its revenue declines
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Altice is trading at $2.34 per share, or 0.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than ATUS.

Topgolf Callaway (MODG)

Consensus Price Target: $8.42 (40.1% implied return)

Formed between the merger of Callaway and Topgolf, Topgolf Callaway (NYSE: MODG) sells golf equipment and operates technology-driven golf entertainment venues.

Why Should You Sell MODG?

  1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
  2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 22.6% annually
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Topgolf Callaway’s stock price of $6.01 implies a valuation ratio of 2.3x forward EV-to-EBITDA. To fully understand why you should be careful with MODG, check out our full research report (it’s free).

One Stock to Buy:

Monday.com (MNDY)

Consensus Price Target: $349.20 (14.8% implied return)

Founded in 2014 and named after the dreaded first day of the work week, Monday.com (NASDAQ: MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently.

Why Is MNDY a Good Business?

  1. ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
  2. Prominent and differentiated software culminates in a best-in-class gross margin of 89.5%
  3. MNDY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $304.18 per share, Monday.com trades at 12.5x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.

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