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 consensus estimates seem disconnected from reality.
Two Stocks to Sell:
American Outdoor Brands (AOUT)
Consensus Price Target: $15.25 (125% implied return)
Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ:AOUT) is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.
Why Do We Pass on AOUT?
- Annual revenue growth of 2.6% over the last five years was below our standards for the consumer discretionary sector
- Earnings per share have dipped by 34.3% annually over the past four years, which is concerning because stock prices follow EPS over the long term
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
American Outdoor Brands is trading at $6.77 per share, or 64.5x forward P/E. Read our free research report to see why you should think twice about including AOUT in your portfolio.
Dime Community Bancshares (DCOM)
Consensus Price Target: $35.40 (34.4% implied return)
With roots dating back to 1910 and a name that evokes the historic "dime savings banks" of America's past, Dime Community Bancshares (NASDAQ:DCOM) is a New York-based bank holding company that provides commercial banking and financial services to businesses and consumers throughout Greater Long Island.
Why Are We Cautious About DCOM?
- Muted 1.4% annual revenue growth over the last two years shows its demand lagged behind its banking peers
- Net interest margin of 2.7% is well below other banks, signaling its loans aren’t very profitable
- Earnings per share fell by 16.1% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
At $26.34 per share, Dime Community Bancshares trades at 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than DCOM.
One Stock to Buy:
Evercore (EVR)
Consensus Price Target: $360 (23.5% implied return)
Founded in 1995 as a boutique advisory firm focused on independence and client trust, Evercore (NYSE:EVR) is an independent investment banking firm that provides strategic advisory, capital markets, and wealth management services to corporations, financial sponsors, and high-net-worth individuals.
Why Will EVR Beat the Market?
- Impressive 19.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Additional sales over the last two years increased its profitability as the 27.1% annual growth in its earnings per share outpaced its revenue
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Evercore’s stock price of $291.50 implies a valuation ratio of 18x 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
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% 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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