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. That said, 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:
H&R Block (HRB)
Consensus Price Target: $41 (29% implied return)
Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE: HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.
Why Is HRB Risky?
- Lackluster 5.6% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Poor free cash flow margin of 16.3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Diminishing returns on capital suggest its earlier profit pools are drying up
H&R Block is trading at $31.79 per share, or 1x forward price-to-sales. To fully understand why you should be careful with HRB, check out our full research report (it’s free).
Exponent (EXPO)
Consensus Price Target: $90 (38.3% implied return)
With a team of over 800 consultants holding advanced degrees in 90+ technical disciplines, Exponent (NASDAQ: EXPO) is a science and engineering consulting firm that investigates complex problems and provides expert analysis for clients across various industries.
Why Does EXPO Worry Us?
- Muted 3.9% annual revenue growth over the last two years shows its demand lagged behind its business services peers
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.3 percentage points
- Eroding returns on capital suggest its historical profit centers are aging
Exponent’s stock price of $65.07 implies a valuation ratio of 27.4x forward P/E. Dive into our free research report to see why there are better opportunities than EXPO.
One Stock to Watch:
Amazon (AMZN)
Consensus Price Target: $281.26 (34% implied return)
Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ: AMZN) is the world’s largest online retailer and provider of cloud computing services.
Why Do We Like AMZN?
- Amazon revolutionized the way consumers shop. This isn’t the only tailwind to its impressive revenue growth, as its highly profitable AWS segment has also driven top-line momentum.
- The company's best-in-class revenue growth coupled with modest operating leverage on its past infrastructure investments has led to elite EPS growth over a multi-year period.
- Though dominant, Amazon's capital-intensive e-commerce business means its profitability is structurally lower than its pure-play tech peers. Can the company pull it up, or are we reaching a ceiling?
At $209.95 per share, Amazon trades at 27.2x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
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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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
