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. Keeping that in mind, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Under Armour (UAA)
Consensus Price Target: $6.17 (26.3% implied return)
Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE: UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.
Why Do We Think UAA Will Underperform?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Under Armour is trading at $4.88 per share, or 15.6x forward P/E. Read our free research report to see why you should think twice about including UAA in your portfolio.
CooperCompanies (COO)
Consensus Price Target: $84.47 (29% implied return)
With a history dating back to 1958 and a portfolio spanning two distinct healthcare segments, Cooper Companies (NASDAQ: COO) develops and manufactures medical devices focused on vision care through contact lenses and women's health including fertility products and services.
Why Does COO Fall Short?
- Muted 7.3% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers
- Free cash flow margin dropped by 8.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- ROIC of 5.1% reflects management’s challenges in identifying attractive investment opportunities
CooperCompanies’s stock price of $65.50 implies a valuation ratio of 14.8x forward P/E. Dive into our free research report to see why there are better opportunities than COO.
One Stock to Watch:
Dutch Bros (BROS)
Consensus Price Target: $83.35 (43.4% 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 Does BROS Catch Our Eye?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Average same-store sales growth of 5.4% over the past two years indicates its restaurants are resonating with diners
- Free cash flow margin grew by 9.8 percentage points over the last year, giving the company more chips to play with
At $58.13 per share, Dutch Bros trades at 82.5x forward P/E. Is now the time to initiate a position? 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).
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
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