1 of Wall Street’s Favorite Stocks for Long-Term Investors and 2 We Avoid

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 likely to meet or exceed Wall Street’s lofty expectations and two where its enthusiasm might be excessive.

Two Stocks to Sell:

Bumble (BMBL)

Consensus Price Target: $3.74 (37.8% implied return)

Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ:BMBL) is a leading dating app built with women at the center.

Why Are We Hesitant About BMBL?

1. Struggled with new customer acquisition as its paying users averaged 6.5% declines
2. Key performance metrics have been flashing red recently as its average revenue per buyer dropped by 9.8% annually while engagement was weak
3. Forecasted revenue decline of 9.2% for the upcoming 12 months implies demand will fall even further

At $2.72 per share, Bumble trades at 2.8x forward EV/EBITDA. If you’re considering BMBL for your portfolio, see our FREE research report to learn more.

Privia Health (PRVA)

Consensus Price Target: $31.67 (50.4% implied return)

Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ:PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.

Why Does PRVA Fall Short?

1. Modest revenue base of $2.36 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
2. Low free cash flow margin of 4.7% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
3. Negative returns on capital show that some of its growth strategies have backfired

Privia Health’s stock price of $21.05 implies a valuation ratio of 19.2x forward P/E. Read our free research report to see why you should think twice about including PRVA in your portfolio.

One Stock to Buy:

Nubank (NU)

Consensus Price Target: $18.78 (26% implied return)

With well over one hundred million customers across Brazil, Mexico, and Colombia through its viral member-get-member referral program, Nubank (NYSE:NU) is a digital banking platform that offers financial services including spending, saving, investing, borrowing, and protection products to millions of customers across Latin America.

Why Will NU Outperform?

1. Market share has increased this cycle as its 40.6% annual revenue growth over the last two years was exceptional
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 53% outpaced its revenue gains
3. Industry-leading 14% return on equity demonstrates management’s skill in finding high-return investments

Nubank is trading at $14.90 per share, or 16.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.