1 of Wall Street's Favorite Stock to Target This Week and 2 Facing Challenges

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. 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:

ACV Auctions (ACVA)

Consensus Price Target: $9.19 (95.8% implied return)

Founded in 2014, ACV Auctions (NASDAQ:ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.

Why Does ACVA Fall Short?

1. High servicing costs result in an inferior gross margin of 27.1% that must be offset through higher volumes
2. Excessive marketing spend signals little organic demand and traction for its platform
3. Low free cash flow margin of 4.6% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

ACV Auctions’s stock price of $4.70 implies a valuation ratio of 9.4x forward EV/EBITDA. To fully understand why you should be careful with ACVA, check out our full research report (it’s free).

Baxter (BAX)

Consensus Price Target: $21.63 (4.9% implied return)

With a history dating back to 1931 and products used in over 100 countries, Baxter International (NYSE:BAX) provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide.

Why Do We Avoid BAX?

1. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
2. Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 6% annually
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam

At $20.63 per share, Baxter trades at 10.8x forward P/E. Read our free research report to see why you should think twice about including BAX in your portfolio.

One Stock to Buy:

Blackstone (BX)

Consensus Price Target: $166.47 (42.1% implied return)

With over $1 trillion in assets under management and investments spanning real estate, private equity, credit, and hedge funds, Blackstone (NYSE:BX) is a global alternative asset manager that invests capital on behalf of pension funds, sovereign wealth funds, and other institutional investors.

Why Are We Backing BX?

1. Annual revenue growth of 16.4% over the last two years was superb and indicates its market share increased during this cycle
2. Performance over the past two years shows its incremental sales were more profitable, as its annual earnings per share growth of 18.7% outpaced its revenue gains

Blackstone is trading at $117.16 per share, or 18.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

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 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.