Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
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 where Wall Street’s excitement appears well-founded and two where consensus estimates seem disconnected from reality.
Two stocks to sell:
Zoom (ZM)
Consensus price target: $118.58 (22.3% implied return)
Once the verb that defined remote work during the pandemic ("let's Zoom later"), Zoom (NASDAQ:ZM) provides a cloud-based platform for video meetings, phone calls, team chat, and collaboration tools that helps businesses and individuals connect virtually.
Why Should You Sell ZM?
- ARR growth averaged a weak 5% over the last year, suggesting that competition is pulling some attention away from its software
- Competitive market dynamics make it difficult to retain customers, leading to a weak 98.5% net revenue retention rate
- Anticipated sales growth of 4.1% for the next year implies demand will be shaky
Zoom’s stock price of $96.93 implies a valuation ratio of 5.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ZM.
Centrus Energy (LEU)
Consensus price target: $207.41 (92.5% implied return)
Operating the only active U.S. facility licensed to produce high-assay low-enriched uranium (HALEU) for next-generation reactors, Centrus Energy (NYSE:LEU) supplies enriched uranium, the fissile component needed to produce fuel for nuclear power reactors.
Why Is LEU Risky?
- Smaller revenue base of $473.9 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Gross margin of 32.3% reflects its high production costs and unfavorable asset base
- Day-to-day expenses have swelled relative to revenue over the last five years as its EBITDA margin fell by 45.7 percentage points
At $107.73 per share, Centrus Energy trades at 31.2x forward P/E. Check out our free in-depth research report to learn more about why LEU doesn’t pass our bar.
One stock to watch:
DigitalOcean (DOCN)
Consensus price target: $173.80 (81.5% implied return)
Built for simplicity in a world of complex cloud solutions, DigitalOcean (NYSE:DOCN) provides a simplified cloud computing platform that enables developers and small businesses to quickly deploy and scale applications.
Why Could DOCN Be a Winner?
- Average billings growth of 25.2% over the last year enhances its liquidity and shows there is steady demand for its products
- Exciting sales outlook for the upcoming 12 months calls for 41% growth, an acceleration from its two-year trend
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
DigitalOcean is trading at $95.78 per share, or 9.3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks we like even more
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.