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2 of Wall Street’s Favorite Stocks with Promising Prospects and 1 That Underwhelm

WIX Cover Image

The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.

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 are two stocks where Wall Street’s excitement appears well-founded and one where its enthusiasm might be excessive.

One Stock to Sell:

Wix (WIX)

Consensus Price Target: $159.70 (77.9% implied return)

Powering over 263 million registered users worldwide with its AI-driven tools, Wix (NASDAQ: WIX) provides a cloud-based platform that helps individuals and businesses create and manage professional websites without requiring coding skills.

Why Do We Think Twice About WIX?

  1. Average billings growth of 13.7% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
  2. Operating margin improvement of 1.9 percentage points over the last year demonstrates its ability to scale efficiently
  3. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 3.6 percentage points over the next year

At $89.76 per share, Wix trades at 2.2x forward price-to-sales. Check out our free in-depth research report to learn more about why WIX doesn’t pass our bar.

Two Stocks to Watch:

Ollie's (OLLI)

Consensus Price Target: $141.67 (24.4% implied return)

Often located in suburban or semi-rural shopping centers, Ollie’s Bargain Outlet (NASDAQ: OLLI) is a discount retailer that acquires excess inventory then sells at meaningful discounts.

Why Could OLLI Be a Winner?

  1. Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
  2. Same-store sales growth averaged 3.2% over the past two years, showing it’s bringing new and repeat shoppers into its stores
  3. Projected revenue growth of 14.8% for the next 12 months is above its three-year trend, pointing to accelerating demand

Ollie’s stock price of $113.84 implies a valuation ratio of 26.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Sezzle (SEZL)

Consensus Price Target: $103.25 (52.8% implied return)

Founded in 2016 as an alternative to traditional credit cards for younger shoppers, Sezzle (NASDAQ: SEZL) provides a payment platform that allows consumers to split purchases into four interest-free installments over six weeks at participating retailers.

Why Does SEZL Stand Out?

  1. Market share has increased this cycle as its 67.8% 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 173% outpaced its revenue gains

Sezzle is trading at $67.58 per share, or 16.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here 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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