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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here is one stock where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Health Catalyst (HCAT)
Consensus Price Target: 979% (130% implied return)
Founded by healthcare professionals Tom Burton and Steve Barlow in 2008, Health Catalyst (NASDAQ:HCAT) provides data and analytics technology to healthcare organizations, enabling them to improve care and lower costs.
Why Does HCAT Fall Short?
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Sales trends were unexciting over the last three years as its 8.2% annual growth was well below the typical software company
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Sky-high servicing costs result in an inferior gross margin of 46.2% that must be offset through increased usage
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Suboptimal cost structure is highlighted by its history of operating losses
At $3.76 per share, Health Catalyst trades at 0.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than HCAT .
Upland (UPLD)
Consensus Price Target: 308% (95% implied return)
Founder Jack McDonald’s second software rollup, Upland Software (NASDAQ:UPLD) is a one stop shop for sales and marketing software, project management, HR, and contact center services for small and medium sized businesses.
Why Do We Steer Clear of UPLD?
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Products and services have few die-hard fans as sales have declined by 3.1% annually over the last three years
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Sales are projected to tank by 12.2% over the next 12 months as its demand continues evaporating
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Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
Upland is trading at $2.18 per share, or 0.3x forward price-to-sales. Check out our free in-depth research report to learn more about why UPLD doesn’t pass our bar .
One Stock to Watch:
AMD (AMD)
Consensus Price Target: 16,891% (87.2% implied return)
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Does AMD Stand Out?
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Annual revenue growth of 30.8% over the last five years was superb and indicates its market share increased during this cycle
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Market share is on track to rise over the next 12 months as its 22.8% projected revenue growth implies demand will accelerate from its two-year trend
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Earnings growth has trumped its peers over the last five years as its EPS has compounded at 39.7% annually
AMD’s stock price of $78.06 implies a valuation ratio of 16x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free .
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month . This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free .