1 of Wall Street’s Favorite Stock Worth Your Attention and 2 We Turn Down

TDOC Cover Image

The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.

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 where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

Teladoc (TDOC)

Consensus Price Target: $9.13 (21.3% implied return)

Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE: TDOC) is a telemedicine platform that facilitates remote doctor’s visits.

Why Are We Hesitant About TDOC?

  1. Lackluster 4.4% annual revenue growth over the last three years indicates the company is losing ground to competitors
  2. Decision to emphasize platform growth over monetization has contributed to 7.1% annual declines in its average revenue per user
  3. Demand will likely fall over the next 12 months as Wall Street expects flat revenue

At $7.52 per share, Teladoc trades at 4.5x forward EV/EBITDA. Check out our free in-depth research report to learn more about why TDOC doesn’t pass our bar.

Movado (MOV)

Consensus Price Target: $31.50 (97.5% implied return)

With its watches displayed in 20 museums around the world, Movado (NYSE: MOV) is a watchmaking company with a portfolio of watch brands and accessories.

Why Are We Wary of MOV?

  1. Annual revenue declines of 6% over the last two years indicate problems with its market positioning
  2. Estimated sales growth of 3.8% for the next 12 months is soft and implies weaker demand
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Movado’s stock price of $15.95 implies a valuation ratio of 0.6x trailing 12-month price-to-sales. If you’re considering MOV for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Vita Coco (COCO)

Consensus Price Target: $41.56 (23.2% implied return)

Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.

Why Do We Watch COCO?

  1. Products are reaching more households as its unit sales averaged 7.8% growth over the past two years
  2. Earnings growth has massively outpaced its peers over the last three years as its EPS has compounded at 195% annually
  3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are growing as it capitalizes on even better market opportunities

Vita Coco is trading at $33.72 per share, or 25.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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