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 analysts may be overlooking some important risks.
Two Stocks to Sell:
ThredUp (TDUP)
Consensus Price Target: $12.50 (68.8% implied return)
Founded to revolutionize thrifting, ThredUp (NASDAQ: TDUP) is a leading online fashion resale marketplace offering a wide selection of gently-used clothing and accessories.
Why Is TDUP Risky?
- Number of orders has disappointed over the past two years, indicating weak demand for its offerings
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Cash-burning history makes us doubt the long-term viability of its business model
At $7.41 per share, ThredUp trades at 57.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TDUP.
ArcBest (ARCB)
Consensus Price Target: $81.42 (23.9% implied return)
Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ: ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight.
Why Should You Sell ARCB?
- Flat unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 23.1% annually, worse than its revenue
- Waning returns on capital imply its previous profit engines are losing steam
ArcBest’s stock price of $65.69 implies a valuation ratio of 16.2x forward P/E. If you’re considering ARCB for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Barrett (BBSI)
Consensus Price Target: $51 (47.1% implied return)
Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ: BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions.
Why Could BBSI Be a Winner?
- Annual revenue growth of 7.2% over the last two years beat the sector average and underscores the unique value of its offerings
- Share repurchases over the last five years enabled its annual earnings per share growth of 10.9% to outpace its revenue gains
- Industry-leading 54.6% return on capital demonstrates management’s skill in finding high-return investments
Barrett is trading at $34.68 per share, or 15.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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