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.
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 likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Medifast (MED)
Consensus Price Target: $15 (34.6% implied return)
Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE:MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.
Why Is MED Risky?
- Annual revenue declines of 36% over the last three years indicate problems with its market positioning
- Revenue base of $429.7 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Sales were less profitable over the last three years as its earnings per share fell by 90.9% annually, worse than its revenue declines
Medifast’s stock price of $11.15 implies a valuation ratio of 3.1x forward EV-to-EBITDA. To fully understand why you should be careful with MED, check out our full research report (it’s free).
GoodRx (GDRX)
Consensus Price Target: $4.56 (91.6% implied return)
Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx (NASDAQ:GDRX) operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes.
Why Are We Out on GDRX?
- Customer additions have disappointed over the past two years, indicating the company’s value proposition may not be resonating
- Subscale operations are evident in its revenue base of $800.7 million, meaning it has fewer distribution channels than its larger rivals
- Negative returns on capital show that some of its growth strategies have backfired
GoodRx is trading at $2.38 per share, or 5.9x forward P/E. Check out our free in-depth research report to learn more about why GDRX doesn’t pass our bar.
One Stock to Buy:
Blue Bird (BLBD)
Consensus Price Target: $63.75 (28.4% implied return)
With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.
Why Are We Bullish on BLBD?
- Annual revenue growth of 14.3% over the past two years was outstanding, reflecting market share gains this cycle
- Free cash flow margin expanded by 20.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are climbing as management makes more lucrative bets
At $49.64 per share, Blue Bird trades at 11.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 6 Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
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