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.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. 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:

Matthews (MATW)

Consensus Price Target: $37 (54.2% implied return)

Originally a death care company, Matthews International (NASDAQ: MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies.

Why Do We Think MATW Will Underperform?

1. Sales tumbled by 6.5% annually over the last two years, showing consumer trends are working against its favor
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 14.8% annually
3. Cash-burning history makes us doubt the long-term viability of its business model

Matthews is trading at $24 per share, or 17.2x forward EV-to-EBITDA. To fully understand why you should be careful with MATW, check out our full research report (it’s free for active Edge members).

Dave & Buster's (PLAY)

Consensus Price Target: $29.57 (109% implied return)

Founded by a former game parlor and bar operator, Dave & Buster’s (NASDAQ: PLAY) operates a chain of arcades providing immersive entertainment experiences.

Why Do We Pass on PLAY?

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. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $14.17 per share, Dave & Buster's trades at 12.2x forward P/E. Read our free research report to see why you should think twice about including PLAY in your portfolio.

One Stock to Watch:

Urban Outfitters (URBN)

Consensus Price Target: $79.67 (26.9% implied return)

Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ: URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.

Why Could URBN Be a Winner?

1. New store openings and solid same-store sales performance have boosted its top-line growth
2. Same-store sales growth averaged 4.3% over the past two years, showing it’s bringing new and repeat shoppers into its stores
3. Earnings per share have massively outperformed its peers over the last five years, increasing by 64.3% annually

Urban Outfitters’s stock price of $62.80 implies a valuation ratio of 11.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

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Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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).

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