1 of Wall Street’s Favorite Stock to Own for Decades and 2 to Be Wary Of

  • May 4, 2025

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. That said, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.

Two Stocks to Sell:

Udemy (UDMY)

Consensus Price Target: $9.53 (44.2% implied return)

With courses ranging from investing to cooking to computer programming, Udemy (NASDAQ:UDMY) is an online learning platform that connects learners with expert instructors who specialize in a wide range of topics.

Why Are We Hesitant About UDMY?

  1. Focus on expanding its platform came at the expense of monetization as its average revenue per buyer fell by 1.6% annually

  2. Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend

  3. Expensive marketing campaigns hurt its profitability and make us wonder what would happen if it let up on the gas

Udemy is trading at $6.61 per share, or 10.4x forward EV/EBITDA. Check out our free in-depth research report to learn more about why UDMY doesn’t pass our bar .

Korn Ferry (KFY)

Consensus Price Target: $78.75 (23% implied return)

With clients including 97% of the S&P 100 and operations in 103 offices across 51 countries, Korn Ferry (NYSE:KFY) is a global consulting firm that helps organizations design optimal structures, recruit talent, develop leaders, and create effective compensation strategies.

Why Should You Dump KFY?

  1. Annual sales declines of 2% for the past two years show its products and services struggled to connect with the market during this cycle

  2. Projected sales growth of 1.6% for the next 12 months suggests sluggish demand

  3. Sales were less profitable over the last two years as its earnings per share fell by 8.1% annually, worse than its revenue declines

Korn Ferry’s stock price of $64.04 implies a valuation ratio of 12.5x forward P/E. Dive into our free research report to see why there are better opportunities than KFY .

One Stock to Buy:

SPX Technologies (SPXC)

Consensus Price Target: $166.92 (15.3% implied return)

SPX Technologies (NYSE:SPXC) is an industrial conglomerate catering to the energy, manufacturing, automotive, and aerospace sectors.

Why Is SPXC a Top Pick?

  1. Market share has increased this cycle as its 13.5% annual revenue growth over the last two years was exceptional

  2. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage

  3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 25.5% annually

At $144.73 per share, SPX Technologies trades at 22.8x 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

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free .