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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Petco (WOOF)
Consensus Price Target: $3.47 (55.7% implied return)
Historically known for its window displays of pets for sale or adoption, Petco (NASDAQ: WOOF) is a specialty retailer of pet food and supplies as well as a provider of services such as wellness checks and grooming.
Why Do We Steer Clear of WOOF?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Push for growth has led to negative returns on capital, signaling value destruction
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $2.23 per share, Petco trades at 9.4x forward P/E. Read our free research report to see why you should think twice about including WOOF in your portfolio.
STAAR Surgical (STAA)
Consensus Price Target: $28 (30.2% implied return)
With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ: STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.
Why Do We Think STAA Will Underperform?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Modest revenue base of $339.6 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
STAAR Surgical’s stock price of $21.50 implies a valuation ratio of 22.7x forward P/E. To fully understand why you should be careful with STAA, check out our full research report (it’s free).
One Stock to Watch:
Boot Barn (BOOT)
Consensus Price Target: $217 (80% implied return)
With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE: BOOT) is a western-inspired apparel and footwear retailer.
Why Do We Like BOOT?
- Fast expansion of new stores to reach markets with few or no locations is justified by its same-store sales growth
- Same-store sales growth averaged 6.7% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Demand for the next 12 months is expected to accelerate above its three-year trend as Wall Street forecasts robust revenue growth of 14.6%
Boot Barn is trading at $120.56 per share, or 13.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
