The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here is one stock where Wall Street’s excitement appears well-founded and two where its enthusiasm might be excessive.
Two Stocks to Sell:
BrightView (BV)
Consensus Price Target: $16.64 (29.7% implied return)
An official field consultant for Major League Baseball, BrightView (NYSE: BV) offers landscaping design, development, and maintenance.
Why Should You Sell BV?
- Annual sales declines of 1.4% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share have dipped by 11.1% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- Underwhelming 2.9% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $12.83 per share, BrightView trades at 18.8x forward P/E. Check out our free in-depth research report to learn more about why BV doesn’t pass our bar.
Applied Digital (APLD)
Consensus Price Target: $52.80 (20.7% implied return)
Pivoting from its origins in cryptocurrency mining to become a key player in the AI infrastructure boom, Applied Digital (NASDAQ: APLD) designs and operates specialized data centers that provide high-performance computing infrastructure for artificial intelligence and blockchain applications.
Why Is APLD Not Exciting?
- Issuance of new shares over the last four years caused its earnings per share to fall by 3.7% annually while its revenue grew
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Applied Digital’s stock price of $43.75 implies a valuation ratio of 58.4x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than APLD.
One Stock to Watch:
Casella Waste Systems (CWST)
Consensus Price Target: $112 (32% 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 Should CWST Be on Your Watchlist?
- Annual revenue growth of 18.2% over the past two years was outstanding, reflecting market share gains this cycle
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Earnings per share grew by 24.2% annually over the last two years and trumped its peers
Casella Waste Systems is trading at $84.87 per share, or 71.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth Stocks for Free HERE.
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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
