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1 of Wall Street’s Favorite Stock to Consider Right Now and 2 to Avoid

BROS 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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. 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:

Olaplex (OLPX)

Consensus Price Target: $2.06 (36.7% implied return)

Rising to fame on TikTok because of its “bond building" hair products, Olaplex (NASDAQ: OLPX) offers products and treatments that repair the damage caused by traditional heat and chemical-based styling goods.

Why Do We Steer Clear of OLPX?

  1. Products aren't resonating with the market as its revenue declined by 14.2% annually over the last three years
  2. Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 45.3% annually, worse than its revenue
  3. Free cash flow margin shrank by 16.1 percentage points over the last year, suggesting the company is consuming more capital to stay competitive

Olaplex is trading at $1.51 per share, or 20.5x forward P/E. Read our free research report to see why you should think twice about including OLPX in your portfolio.

EchoStar (SATS)

Consensus Price Target: $40.36 (35.9% implied return)

Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ: SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.

Why Are We Out on SATS?

  1. Sales tumbled by 6.3% annually over the last two years, showing market trends are working against its favor during this cycle
  2. 6.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $29.70 per share, EchoStar trades at 5.4x forward EV-to-EBITDA. If you’re considering SATS for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Dutch Bros (BROS)

Consensus Price Target: $78.42 (23.6% implied return)

Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE: BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.

Why Is BROS Interesting?

  1. Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
  2. Average same-store sales growth of 5.2% over the past two years indicates its restaurants are resonating with diners
  3. Market share will likely rise over the next 12 months as its expected revenue growth of 22.9% is robust

Dutch Bros’s stock price of $63.44 implies a valuation ratio of 98.5x forward P/E. Is now a good time to buy? Find out 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 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-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

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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