Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here are two stocks where Wall Street’s excitement appears well-founded and one where consensus estimates seem disconnected from reality.
One Stock to Sell:
3D Systems (DDD)
Consensus Price Target: $3.63 (73.9% 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 Do We Avoid DDD?
- 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
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
3D Systems is trading at $2.09 per share, or 0.7x forward price-to-sales. To fully understand why you should be careful with DDD, check out our full research report (it’s free).
Two Stocks to Watch:
Carvana (CVNA)
Consensus Price Target: $438.05 (31.6% implied return)
Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Why Do We Love CVNA?
- Annual revenue growth of 14.3% over the last three years beat the sector average and underscores the popularity of its platform
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 39.7% annually, topping its revenue gains
- Free cash flow margin increased by 17.9 percentage points over the last few years, giving the company more capital to invest or return to shareholders
Carvana’s stock price of $332.75 implies a valuation ratio of 32.1x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Rocket Companies (RKT)
Consensus Price Target: $21.57 (17.7% implied return)
Born in Detroit during the 1980s and evolving into a tech-driven financial powerhouse, Rocket Companies (NYSE: RKT) is a fintech company that provides digital mortgage lending, real estate services, and personal finance solutions through its technology platform.
Why Does RKT Catch Our Eye?
- Net interest income outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Expected tangible book value per share growth of 427% for the next year suggests its capital position will strengthen considerably
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $18.34 per share, Rocket Companies trades at 3x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. 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.
