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. That said, here is one stock where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Olaplex (OLPX)
Consensus Price Target: $2.06 (85.3% implied return)
Rising to fame on TikTok because of its “bond building" hair products, Olaplex (NASDAQ: OLPX) offers products and treatments that repair the damage caused by traditional heat and chemical-based styling goods.
Why Are We Hesitant About OLPX?
- Products aren't resonating with the market as its revenue declined by 16.4% annually over the last three years
- Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 49.6% annually, worse than its revenue
- 13.2 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position
At $1.11 per share, Olaplex trades at 12.7x forward P/E. To fully understand why you should be careful with OLPX, check out our full research report (it’s free for active Edge members).
Wiley (WLY)
Consensus Price Target: $60 (61.2% implied return)
With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE: WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals.
Why Should You Dump WLY?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.9% annually over the last five years
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Free cash flow margin dropped by 7.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Wiley’s stock price of $37.21 implies a valuation ratio of 5.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why WLY doesn’t pass our bar.
One Stock to Buy:
e.l.f. Beauty (ELF)
Consensus Price Target: $151.50 (23.3% implied return)
Short for "eyes, lips, face", e.l.f. Beauty (NYSE: ELF) is a developer of high-quality beauty products at accessible price points.
Why Is ELF a Good Business?
- Impressive 47.6% annual revenue growth over the last three years indicates it’s winning market share
- Earnings per share grew by 48.6% annually over the last three years, massively outpacing its peers
- Free cash flow margin expanded by 6.5 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends
e.l.f. Beauty is trading at $122.90 per share, or 32x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our 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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