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. That said, here are two stocks where Wall Street’s excitement appears well-founded and one where consensus estimates seem disconnected from reality.

One Stock to Sell:

Dayforce (DAY)

Consensus Price Target: $66.87 (33.9% implied return)

Founded in 1992 as Ceridian, an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Dayforce (NYSE: DAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses.

Why Does DAY Fall Short?

1. 17.8% annual revenue growth over the last three years was slower than its software peers
2. Sky-high servicing costs result in an inferior gross margin of 50.9% that must be offset through increased usage
3. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 1.3 percentage points over the next year

Dayforce is trading at $49.92 per share, or 3.9x forward price-to-sales. Check out our free in-depth research report to learn more about why DAY doesn’t pass our bar.

Two Stocks to Watch:

Photronics (PLAB)

Consensus Price Target: $31 (56.3% implied return)

Sporting a global footprint of facilities, Photronics (NASDAQ: PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.

Why Are We Fans of PLAB?

1. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
2. Share repurchases have increased shareholder returns as its annual earnings per share growth of 31.7% exceeded its revenue gains over the last five years
3. ROIC punches in at 25.4%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities

Photronics’s stock price of $19.83 implies a valuation ratio of 9.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

United Therapeutics (UTHR)

Consensus Price Target: $376.82 (25.4% implied return)

Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ: UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments.

Why Will UTHR Outperform?

1. Annual revenue growth of 20.7% over the last two years was superb and indicates its market share increased during this cycle
2. UTHR is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business
3. Improving returns on capital reflect management’s ability to monetize investments

At $300.43 per share, United Therapeutics trades at 9.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound 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).

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