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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where its enthusiasm might be excessive.
Two Stocks to Sell:
The Real Brokerage (REAX)
Consensus Price Target: $6.50 (50.8% implied return)
Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.
Why Are We Wary of REAX?
- Historical operating losses point to an inefficient cost structure
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 9% annually while its revenue grew
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 3.3% for the last two years
At $4.31 per share, The Real Brokerage trades at 16.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why REAX doesn’t pass our bar.
Graphic Packaging Holding (GPK)
Consensus Price Target: $26.55 (15.1% implied return)
Founded in 1991, Graphic Packaging (NYSE:GPK) is a provider of paper-based packaging solutions for a wide range of products.
Why Should You Dump GPK?
- Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Earnings per share have contracted by 5.5% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Free cash flow margin dropped by 10.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Graphic Packaging Holding’s stock price of $23.06 implies a valuation ratio of 9.4x forward P/E. To fully understand why you should be careful with GPK, check out our full research report (it’s free).
One Stock to Watch:
Expedia (EXPE)
Consensus Price Target: $189.19 (12.8% implied return)
Originally founded as a part of Microsoft, Expedia (NASDAQ:EXPE) is one of the world’s leading online travel agencies.
Why Are We Fans of EXPE?
- Prominent and differentiated platform results in a best-in-class gross margin of 89%
- Excellent EBITDA margin of 21.3% highlights the efficiency of its business model, and its profits increased over the last few years as it scaled
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 60.8% exceeded its revenue gains over the last three years
Expedia is trading at $167.69 per share, or 6.8x forward EV/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.