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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Skyworks Solutions (SWKS)
Consensus Price Target: $68.25 (11.5% implied return)
Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.
Why Are We Bearish on SWKS?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.3% annually over the last five years
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Operating profits fell over the last five years as its sales dropped and it struggled to adjust its fixed costs
At $61.20 per share, Skyworks Solutions trades at 13.2x forward P/E. Read our free research report to see why you should think twice about including SWKS in your portfolio.
Darling Ingredients (DAR)
Consensus Price Target: $78.58 (31% implied return)
Turning what others consider waste into valuable resources, Darling Ingredients (NYSE: DAR) collects and transforms animal by-products, used cooking oil, and other bio-nutrients into valuable ingredients for food, feed, fuel, and industrial applications.
Why Does DAR Fall Short?
- Annual sales declines of 2.5% for the past three years show its products struggled to connect with the market
- Gross margin of 24.7% is below its competitors, leaving less money to invest in areas like marketing and production facilities
- Earnings per share have dipped by 4.9% annually over the past three years, which is concerning because stock prices follow EPS over the long term
Darling Ingredients is trading at $59.98 per share, or 9.8x forward P/E. Check out our free in-depth research report to learn more about why DAR doesn’t pass our bar.
One Stock to Buy:
Copart (CPRT)
Consensus Price Target: $40.30 (37.5% implied return)
Starting as a single salvage yard in California in 1982, Copart (NASDAQ: CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.
What Makes CPRT Stand Out?
- Market share has increased this cycle as its 13.4% annual revenue growth over the last five years was exceptional
- CPRT is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
- Industry-leading 31.8% return on capital demonstrates management’s skill in finding high-return investments
Copart’s stock price of $29.31 implies a valuation ratio of 17.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
