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

MCW 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 consensus estimates seem disconnected from reality.

Two Stocks to Sell:

Mister Car Wash (MCW)

Consensus Price Target: $8.17 (32% implied return)

Formerly known as Hotshine Holdings, Mister Car Wash (NYSE: MCW) offers car washes across the United States through its conveyorized service.

Why Should You Sell MCW?

  1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  2. Negative free cash flow raises questions about the return timeline for its investments
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $6.19 per share, Mister Car Wash trades at 13x forward P/E. Check out our free in-depth research report to learn more about why MCW doesn’t pass our bar.

Casella Waste Systems (CWST)

Consensus Price Target: $122.87 (23.7% implied return)

Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ: CWST) offers waste management services for businesses, residents, and the government.

Why Is CWST Not Exciting?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  2. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 4.7 percentage points
  3. Underwhelming 6.1% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam

Casella Waste Systems’s stock price of $99.29 implies a valuation ratio of 83.3x forward P/E. Dive into our free research report to see why there are better opportunities than CWST.

One Stock to Buy:

Alignment Healthcare (ALHC)

Consensus Price Target: $18.90 (28.7% implied return)

Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ: ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination.

Why Will ALHC Beat the Market?

  1. Average customer growth of 40.2% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
  2. Earnings per share grew by 45.5% annually over the last four years and trumped its peers
  3. Free cash flow profile has reached break even, showing the company is at an important crossroads

Alignment Healthcare is trading at $14.68 per share, or 40.3x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

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).

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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