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 where Wall Street’s positive outlook is supported by strong fundamentals and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Levi's (LEVI)
Consensus Price Target: $28.27 (26.2% implied return)
Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE: LEVI) is an apparel company renowned for its iconic denim products and classic American style.
Why Do We Avoid LEVI?
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 6.4 percentage points over the next year
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Levi's is trading at $22.40 per share, or 14x forward P/E. If you’re considering LEVI for your portfolio, see our FREE research report to learn more.
Surgery Partners (SGRY)
Consensus Price Target: $18.73 (18% implied return)
With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ: SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals.
Why Are We Hesitant About SGRY?
- Underwhelming unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Estimated sales growth of 2.4% for the next 12 months implies demand will slow from its two-year trend
- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Surgery Partners’s stock price of $15.87 implies a valuation ratio of 27.7x forward P/E. Dive into our free research report to see why there are better opportunities than SGRY.
One Stock to Watch:
Douglas Dynamics (PLOW)
Consensus Price Target: $54 (30.2% implied return)
Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE: PLOW) offers snow and ice equipment for the roads and sidewalks.
Why Are We Positive on PLOW?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 10.4% annual sales growth over the last two years
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 43.6% over the last two years outstripped its revenue performance
- Free cash flow margin expanded by 11 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $41.49 per share, Douglas Dynamics trades at 13.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth 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 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
