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1 of Wall Street’s Favorite Stock to Target This Week and 2 Facing Headwinds

NKE Cover Image

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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. 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:

Nike (NKE)

Consensus Price Target: $76.15 (16.4% implied return)

Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE: NKE) is a global titan in athletic footwear, apparel, equipment, and accessories.

Why Do We Pass on NKE?

  1. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
  2. Projected 2.3 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Nike’s stock price of $65.44 implies a valuation ratio of 34.2x forward P/E. To fully understand why you should be careful with NKE, check out our full research report (it’s free).

3D Systems (DDD)

Consensus Price Target: $3.63 (75.1% implied return)

Founded by the inventor of stereolithography, 3D Systems (NYSE: DDD) engineers, manufactures, and sells 3D printers and other related products to the aerospace, automotive, healthcare, and consumer goods industries.

Why Should You Sell DDD?

  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. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

3D Systems is trading at $2.07 per share, or 0.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than DDD.

One Stock to Watch:

Carlyle (CG)

Consensus Price Target: $68.60 (24.9% implied return)

Founded in 1987 with just $5 million in capital and named after the iconic New York hotel where the founders first met, The Carlyle Group (NASDAQ: CG) is a global investment firm that raises, manages, and deploys capital across private equity, credit, and investment solutions.

Why Do We Like CG?

  1. Solid 11.2% annual revenue growth over the last five years indicates its offering’s solve complex business issues
  2. Incremental sales over the last five years boosted profitability as its annual earnings per share growth of 14.4% outstripped its revenue performance

At $54.91 per share, Carlyle trades at 11.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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.

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