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1 of Wall Street’s Favorite Stock to Own for Decades and 2 That Underwhelm

ESTC Cover Image

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.

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 its enthusiasm might be excessive.

Two Stocks to Sell:

Elastic (ESTC)

Consensus Price Target: $82.13 (58.8% implied return)

Built on the powerful open-source Elasticsearch technology that powers search functionality for thousands of websites worldwide, Elastic (NYSE: ESTC) provides a search and AI platform that helps organizations find insights from their data, monitor applications, and protect against security threats.

Why Are We Hesitant About ESTC?

  1. Average billings growth of 12.5% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
  2. Estimated sales growth of 13.6% for the next 12 months implies demand will slow from its two-year trend
  3. Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient

Elastic is trading at $51.73 per share, or 2.9x forward price-to-sales. To fully understand why you should be careful with ESTC, check out our full research report (it’s free).

fuboTV (FUBO)

Consensus Price Target: $3.44 (195% implied return)

Originally launched as a soccer streaming platform, fuboTV (NYSE: FUBO) is a video streaming service specializing in live sports, news, and entertainment content.

Why Should You Dump FUBO?

  1. Sluggish trends in its domestic subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
  2. Historical operating margin losses point to an inefficient cost structure
  3. Cash-burning history makes us doubt the long-term viability of its business model

fuboTV’s stock price of $1.17 implies a valuation ratio of 1.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why FUBO doesn’t pass our bar.

One Stock to Buy:

Dutch Bros (BROS)

Consensus Price Target: $76.64 (58.5% implied return)

Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE: BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.

Why Is BROS a Good Business?

  1. Fast expansion of new restaurants to reach markets with few or no locations is justified by its same-store sales growth
  2. Same-store sales growth averaged 6% over the past two years, showing it’s bringing new and repeat diners into its restaurants
  3. Notable projected revenue growth of 24.8% for the next 12 months hints at market share gains

At $48.35 per share, Dutch Bros trades at 57.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth 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.

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