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1 of Wall Street’s Favorite Stock with Exciting Potential and 2 We Find Risky

MTN Cover Image

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.

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 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:

Vail Resorts (MTN)

Consensus Price Target: $174.18 (23% implied return)

Founded by two Aspen, Colorado ski patrol guides, Vail Resorts (NYSE: MTN) is a mountain resort company offering luxury experiences in over 30 locations across the globe.

Why Are We Out on MTN?

  1. Number of skier visits has disappointed over the past two years, indicating weak demand for its offerings
  2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 11.3% for the last two years
  3. Returns on capital are increasing as management makes relatively better investment decisions

Vail Resorts’s stock price of $141.64 implies a valuation ratio of 20.6x forward P/E. Dive into our free research report to see why there are better opportunities than MTN.

Danaher (DHR)

Consensus Price Target: $264.91 (27.2% implied return)

Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE: DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.

Why Does DHR Fall Short?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 10.4 percentage points
  3. 7.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $208.30 per share, Danaher trades at 24.6x forward P/E. To fully understand why you should be careful with DHR, check out our full research report (it’s free).

One Stock to Buy:

Instacart (CART)

Consensus Price Target: $49.63 (36.2% implied return)

Powering more than one billion grocery orders since its founding, Instacart (NASDAQ: CART) is an online grocery shopping and delivery platform that partners with retailers to help customers shop from local stores through its app or website.

Why Do We Love CART?

  1. Platform is difficult to replicate at scale and results in a premier gross margin of 74.4%
  2. Excellent EBITDA margin of 27.7% highlights the efficiency of its business model, and its profits increased over the last few years as it scaled
  3. Free cash flow margin increased by 14.4 percentage points over the last few years, giving the company more capital to invest or return to shareholders

Instacart is trading at $36.44 per share, or 7.3x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 9 Market-Beating Stocks. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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