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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here is one stock where Wall Street’s excitement appears well-founded and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Q2 Holdings (QTWO)
Consensus Price Target: $76.38 (68.4% implied return)
With a platform powering digital services for approximately 25 million account holders across America, Q2 Holdings (NYSE: QTWO) provides cloud-based digital solutions that help financial institutions, fintechs, and alternative finance companies deliver modern banking experiences to their customers.
Why Are We Cautious About QTWO?
- Average ARR growth of 11.2% over the last year has disappointed, suggesting it’s had a hard time winning long-term deals and renewals
- Estimated sales growth of 10.2% for the next 12 months implies demand will slow from its two-year trend
- Gross margin of 54.1% reflects its high servicing costs
Q2 Holdings’s stock price of $45.37 implies a valuation ratio of 3.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than QTWO.
Planet Fitness (PLNT)
Consensus Price Target: $112.06 (52.7% implied return)
Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE: PLNT) is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.
Why Should You Dump PLNT?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience
- Projected 2.6 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $73.38 per share, Planet Fitness trades at 22.3x forward P/E. If you’re considering PLNT for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
LPL Financial (LPLA)
Consensus Price Target: $451.92 (52.3% implied return)
As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ: LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.
Why Will LPLA Outperform?
- Annual revenue growth of 30% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 25.5% annually, topping its revenue gains
- Industry-leading 37.9% return on equity demonstrates management’s skill in finding high-return investments
LPL Financial is trading at $296.81 per share, or 12.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
