Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
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 consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Utz (UTZ)
Consensus Price Target: $15.75 (55.5% implied return)
Tracing its roots back to 1921 when Bill and Salie Utz began making potato chips in their kitchen, Utz Brands (NYSE:UTZ) offers salty snacks such as potato chips, tortilla chips, pretzels, cheese snacks, and ready-to-eat popcorn, among others.
Why Is UTZ Risky?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Subscale operations are evident in its revenue base of $1.44 billion, meaning it has fewer distribution channels than its larger rivals
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Utz’s stock price of $10.13 implies a valuation ratio of 11.3x forward P/E. To fully understand why you should be careful with UTZ, check out our full research report (it’s free for active Edge members).
AeroVironment (AVAV)
Consensus Price Target: $408.77 (22.5% implied return)
Focused on the future of autonomous military combat, AeroVironment (NASDAQ:AVAV) specializes in advanced unmanned aircraft systems and electric vehicle charging solutions.
Why Is AVAV Not Exciting?
- Efficiency has decreased over the last five years as its operating margin fell by 9.4 percentage points
- Free cash flow margin shrank by 25.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Negative returns on capital show management lost money while trying to expand the business
AeroVironment is trading at $333.80 per share, or 78.2x forward P/E. Read our free research report to see why you should think twice about including AVAV in your portfolio.
One Stock to Watch:
Boston Scientific (BSX)
Consensus Price Target: $126.48 (24.7% implied return)
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE:BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Do We Watch BSX?
- Core business can prosper without any help from acquisitions as its organic revenue growth averaged 16.2% over the past two years
- Additional sales over the last five years increased its profitability as the 19.9% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 5.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $101.40 per share, Boston Scientific trades at 30.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 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-small-cap company Exlservice (+354% 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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