1 of Wall Street's Favorite Stock for Long-Term Investors and 2 That Underwhelm

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 its enthusiasm might be excessive.

Two Stocks to Sell:

Strategic Education (STRA)

Consensus Price Target: $101.67 (26.4% implied return)

Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ:STRA) is a career-focused higher education provider.

Why Are We Out on STRA?

1. Demand for its offerings was relatively low as its number of domestic students has underwhelmed
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 5.2% annually while its revenue grew
3. Forecasted free cash flow margin suggests the company will fail to improve its cash conversion over the next year

At $80.42 per share, Strategic Education trades at 13x forward P/E. Read our free research report to see why you should think twice about including STRA in your portfolio.

Carrier Global (CARR)

Consensus Price Target: $72.14 (37% implied return)

Founded by the inventor of air conditioning, Carrier Global (NYSE:CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.

Why Should You Dump CARR?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Estimated sales growth of 1.5% for the next 12 months implies demand will slow from its two-year trend
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Carrier Global is trading at $52.67 per share, or 18.9x forward P/E. To fully understand why you should be careful with CARR, check out our full research report (it’s free for active Edge members).

One Stock to Watch:

Hims & Hers Health (HIMS)

Consensus Price Target: $44.67 (24.2% implied return)

Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.

Why Do We Watch HIMS?

1. Business is winning new contracts that can potentially increase in value as its customer base averaged 38.9% growth over the past two years
2. Free cash flow margin expanded by 21.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
3. Rising returns on capital show the company is starting to reap the benefits of its past investments

Hims & Hers Health’s stock price of $35.97 implies a valuation ratio of 36.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.