Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.

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 where Wall Street’s excitement appears well-founded and two where consensus estimates seem disconnected from reality.

Two Stocks to Sell:

Udemy (UDMY)

Consensus Price Target: $9.84 (43.4% implied return)

With courses ranging from investing to cooking to computer programming, Udemy (NASDAQ: UDMY) is an online learning platform that connects learners with expert instructors who specialize in a wide range of topics.

Why Are We Hesitant About UDMY?

1. Customer spending has dipped by 1.6% on average as it focused on growing its buyers
2. Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
3. High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum

Udemy’s stock price of $6.86 implies a valuation ratio of 11x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than UDMY.

Xerox (XRX)

Consensus Price Target: $10.21 (87.2% implied return)

Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ: XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe.

Why Do We Steer Clear of XRX?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.7% annually over the last five years
2. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Xerox is trading at $5.45 per share, or 5.5x forward P/E. To fully understand why you should be careful with XRX, check out our full research report (it’s free).

One Stock to Buy:

Inter Parfums (IPAR)

Consensus Price Target: $165 (21.8% implied return)

With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ: IPAR) manufactures and distributes fragrances worldwide.

Why Is IPAR a Top Pick?

1. Market share has increased over the last three years as its 16.3% annual revenue growth was exceptional
2. Unique products and pricing power result in a top-tier gross margin of 55.6%
3. Free cash flow margin increased by 11.3 percentage points over the last year, giving the company more capital to invest or return to shareholders

At $135.46 per share, Inter Parfums trades at 24.4x forward P/E. Is now a good time to buy? See for yourself 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 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-small-cap company Comfort Systems (+782% 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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