1 of Wall Street's Favorite Stock on Our Buy List and 2 We Avoid

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. That said, here is one stock where Wall Street’s excitement appears well-founded and two where its enthusiasm might be excessive.

Two Stocks to Sell:

Marriott Vacations (VAC)

Consensus Price Target: $91.90 (26.5% implied return)

Spun off from Marriott International in 1984, Marriott Vacations (NYSE:VAC) is a vacation company providing leisure experiences for travelers around the world.

Why Are We Out on VAC?

1. Demand for its offerings was relatively low as its number of conducted tours has underwhelmed
2. Below-average returns on capital indicate management struggled to find compelling investment opportunities
3. 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Marriott Vacations is trading at $72.64 per share, or 10x forward P/E. If you’re considering VAC for your portfolio, see our FREE research report to learn more.

Haemonetics (HAE)

Consensus Price Target: $78.64 (55.3% implied return)

With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE:HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.

Why Is HAE Not Exciting?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Smaller revenue base of $1.35 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Projected sales decline of 2.9% for the next 12 months points to a tough demand environment ahead

Haemonetics’s stock price of $50.62 implies a valuation ratio of 10.1x forward P/E. Read our free research report to see why you should think twice about including HAE in your portfolio.

One Stock to Buy:

Oxford Lane Capital (OXLC)

Consensus Price Target: $22.50 (30.5% implied return)

Offering monthly dividend payments to income-focused investors, Oxford Lane Capital (NASDAQ:OXLC) is a closed-end management investment company that primarily invests in collateralized loan obligation (CLO) equity and debt securities.

Why Are We Bullish on OXLC?

1. Annual revenue growth of 28.1% over the past two years was outstanding, reflecting market share gains this cycle
2. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

At $17.24 per share, Oxford Lane Capital trades at 18.1x trailing 12-month price-to-sales. 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 April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 183% over the last five years (as of March 31st 2025).

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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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