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華爾街日報1 of Wall Street’s Favorite Stock Worth Investigating and 2 We Find Risky
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:
Charter (CHTR)
Consensus Price Target: $314.94 (48% implied return)
Operating as Spectrum, Charter (NASDAQ:CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.
Why Are We Out on CHTR?
- Number of internet subscribers has disappointed over the past two years, indicating weak demand for its offerings
- Free cash flow margin is expected to remain in place over the coming year
- Returns on capital are increasing as management makes relatively better investment decisions
Charter’s stock price of $212.85 implies a valuation ratio of 5.1x forward P/E. To fully understand why you should be careful with CHTR, check out our full research report (it’s free for active Edge members).
European Wax Center (EWCZ)
Consensus Price Target: $6.68 (59.7% implied return)
Founded by two siblings, European Wax Center (NASDAQ:EWCZ) is a beauty and waxing salon chain specializing in professional wax services and skincare products.
Why Is EWCZ Risky?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience
- Earnings growth over the last four years fell short of the peer group average as its EPS only increased by 4% annually
- Returns on capital are growing as management invests in more worthwhile ventures
At $4.19 per share, European Wax Center trades at 6.7x forward P/E. Check out our free in-depth research report to learn more about why EWCZ doesn’t pass our bar.
One Stock to Watch:
Arcos Dorados (ARCO)
Consensus Price Target: $9.50 (28.1% implied return)
Translating to “Golden Arches” in Spanish, Arcos Dorados (NYSE:ARCO) is the master franchisee of the McDonald's brand in Latin America and the Caribbean, responsible for its operations and growth in over 20 countries.
Why Could ARCO Be a Winner?
- Restaurant expansion strategy is justified by its healthy same-store sales
- Same-store sales growth averaged 23.1% over the past two years, showing it’s bringing new and repeat diners into its restaurants
- $4.56 billion in revenue gives its scale, which leads to bargaining power with suppliers and retailers
Arcos Dorados is trading at $7.42 per share, or 3x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
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-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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