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 where Wall Street’s positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.

Two Stocks to Sell:

Flywire (FLYW)

Consensus Price Target: $17.19 (33.2% implied return)

Initially created to solve the challenges of international student tuition payments, Flywire (NASDAQ: FLYW) provides specialized payment processing and software solutions that help educational institutions, healthcare systems, travel companies, and businesses manage complex payments.

Why Does FLYW Give Us Pause?

1. High servicing costs result in a relatively inferior gross margin of 61.3% that must be offset through increased usage
2. Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
3. Operating margin improvement of 3.7 percentage points over the last year demonstrates its ability to scale efficiently

Flywire is trading at $12.91 per share, or 2.5x forward price-to-sales. If you’re considering FLYW for your portfolio, see our FREE research report to learn more.

Coty (COTY)

Consensus Price Target: $4.46 (43.3% implied return)

With a portfolio boasting many household brands, Coty (NYSE: COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.

Why Are We Out on COTY?

1. Organic revenue growth fell short of our benchmarks over the past one years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 6.3 percentage points
3. Earnings per share have contracted by 14.1% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

Coty’s stock price of $3.12 implies a valuation ratio of 6.9x forward P/E. Check out our free in-depth research report to learn more about why COTY doesn’t pass our bar.

One Stock to Buy:

Cloudflare (NET)

Consensus Price Target: $231.95 (27.8% implied return)

With a massive network spanning more than 310 cities in over 120 countries, Cloudflare (NYSE: NET) provides a global network that delivers security, performance and reliability services to protect websites, applications, and corporate networks.

Why Are We Backing NET?

1. Winning new contracts that can potentially increase in value as its billings growth has averaged 34.2% over the last year
2. Expected revenue growth of 27.7% for the next year suggests its market share will rise
3. Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale

At $181.52 per share, Cloudflare trades at 25.1x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

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 5 Growth Stocks for this month. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.