1 of Wall Street's Favorite Stock with Exciting Potential and 2 We Ignore

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. Keeping that in mind, 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:

Flowers Foods (FLO)

Consensus Price Target: $13.86 (20.3% implied return)

With Wonder Bread as its premier brand, Flower Foods (NYSE:FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes.

Why Do We Avoid FLO?

1. Falling unit sales over the past two years imply it may need to invest in product improvements to get back on track
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.9%
3. Earnings per share have dipped by 20.6% annually over the past three years, which is concerning because stock prices follow EPS over the long term

Flowers Foods is trading at $11.52 per share, or 11.3x forward P/E. Dive into our free research report to see why there are better opportunities than FLO.

Revvity (RVTY)

Consensus Price Target: $113.67 (20.6% implied return)

Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE:RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.

Why Should You Sell RVTY?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Adjusted operating profits fell over the last five years as its sales dropped and it struggled to adjust its fixed costs
3. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term

At $94.28 per share, Revvity trades at 17.8x forward P/E. If you’re considering RVTY for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

MercadoLibre (MELI)

Consensus Price Target: $2,877 (36.9% implied return)

Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.

Why Should You Buy MELI?

1. Unique Active Buyers have grown by 21.7% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
2. Platform’s growing usage and its ability to increase user spending by 13.9% annually showcases its high switching costs
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business

MercadoLibre’s stock price of $2,101 implies a valuation ratio of 21.4x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

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 (+1,545% 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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