Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.

Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. Keeping that in mind, here is one stock poised to prove Wall Street wrong and two where the outlook is warranted.

Two Stocks to Sell:

Dollar Tree (DLTR)

Consensus Price Target: $126.30 (12.9% implied return)

A treasure hunt because there’s no guarantee of consistent product selection, Dollar Tree (NASDAQ: DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices.

Why Should You Dump DLTR?

1. Products have few die-hard fans as sales have declined by 11.9% annually over the last three years
2. Lack of new stores puts a ceiling on its growth and reflects a focus on optimizing sales at existing locations
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

Dollar Tree’s stock price of $111.85 implies a valuation ratio of 17.6x forward P/E. Check out our free in-depth research report to learn more about why DLTR doesn’t pass our bar.

MarineMax (HZO)

Consensus Price Target: $31.86 (20.9% implied return)

Appropriately headquartered in Clearwater, Florida, MarineMax (NYSE: HZO) sells boats, yachts, and other marine products.

Why Are We Out on HZO?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Earnings per share have dipped by 62.2% annually over the past three years, which is concerning because stock prices follow EPS over the long term
3. High net-debt-to-EBITDA ratio of 11× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $26.36 per share, MarineMax trades at 26.9x forward P/E. Dive into our free research report to see why there are better opportunities than HZO.

One Stock to Buy:

Merck (MRK)

Consensus Price Target: $127.78 (10.7% implied return)

With roots dating back to 1891 and a portfolio that includes the blockbuster cancer immunotherapy Keytruda, Merck (NYSE: MRK) develops and sells prescription medicines, vaccines, and animal health products across oncology, infectious diseases, cardiovascular, and other therapeutic areas.

Why Will MRK Outperform?

1. Massive revenue base of $65.01 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
2. Adjusted operating profits increased over the last two years as the company gained some leverage on its fixed costs and became more efficient
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Merck is trading at $115.41 per share, or 22.5x 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

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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.