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 likely to meet or exceed Wall Street’s lofty expectations and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Caesars Entertainment (CZR)
Consensus Price Target: $32.11 (56.3% implied return)
Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ: CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties.
Why Do We Pass on CZR?
- Flat sales over the last two years suggest it must innovate and find new ways to grow
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Caesars Entertainment’s stock price of $20.55 implies a valuation ratio of 7.6x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including CZR in your portfolio.
Omnicom Group (OMC)
Consensus Price Target: $101.10 (44.8% implied return)
With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE: OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.
Why Does OMC Worry Us?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.6 percentage points
- Diminishing returns on capital suggest its earlier profit pools are drying up
Omnicom Group is trading at $69.83 per share, or 7.2x forward P/E. Check out our free in-depth research report to learn more about why OMC doesn’t pass our bar.
One Stock to Buy:
CLEAR Secure (YOU)
Consensus Price Target: $39.38 (15.1% implied return)
Recognized by its signature blue lanes and biometric pods at airport checkpoints across America, CLEAR Secure (NYSE: YOU) provides biometric identity verification technology that allows subscribers to bypass regular security lines at airports and access secure experiences at various venues.
Why Will YOU Beat the Market?
- Market share has increased as its 23.2% annual revenue growth over the last two years was exceptional
- Superior software functionality and low servicing costs are reflected in its best-in-class gross margin of 86%
- Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 19.2%, and its rise over the last year was fueled by some leverage on its fixed costs
At $34.22 per share, CLEAR Secure trades at 3.3x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
