1 of Wall Street’s Favorite Stocks with Competitive Advantages and 2 We Avoid

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GDDY 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.

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 likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

GoDaddy (GDDY)

Consensus Price Target: $114.53 (31% implied return)

Known for its memorable Super Bowl commercials that put it on the map, GoDaddy (NYSE: GDDY) is a domain registrar and web services provider that helps entrepreneurs establish an online presence through domain registration, website building, hosting, and e-commerce tools.

Why Do We Avoid GDDY?

  1. Customers had second thoughts about committing to its platform over the last year as its average billings growth of 3.6% underwhelmed
  2. Estimated sales growth of 5.9% for the next 12 months implies demand will slow from its two-year trend
  3. Operating margin expanded by 3 percentage points over the last year as it scaled and became more efficient

At $87.44 per share, GoDaddy trades at 2.2x forward price-to-sales. To fully understand why you should be careful with GDDY, check out our full research report (it’s free).

Newmark (NMRK)

Consensus Price Target: $19.58 (33.9% implied return)

Founded in 1929, Newmark (NASDAQ: NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting.

Why Is NMRK Risky?

  1. Annual revenue growth of 12.5% over the last five years was below our standards for the consumer discretionary sector
  2. Negative free cash flow raises questions about the return timeline for its investments
  3. Returns on capital are increasing as management makes relatively better investment decisions

Newmark is trading at $14.63 per share, or 7.4x forward P/E. Dive into our free research report to see why there are better opportunities than NMRK.

One Stock to Watch:

Boot Barn (BOOT)

Consensus Price Target: $225.14 (36.1% implied return)

With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE: BOOT) is a western-inspired apparel and footwear retailer.

Why Does BOOT Stand Out?

  1. Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
  2. Comparable store sales rose by 6.3% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
  3. Free cash flow margin jumped by 5.6 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Boot Barn’s stock price of $165.41 implies a valuation ratio of 19.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

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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.

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