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 where Wall Street’s excitement appears well-founded and two where its enthusiasm might be excessive.

Two Stocks to Sell:

Altice (ATUS)

Consensus Price Target: $2.92 (24.6% implied return)

Based in Long Island City, Altice USA (NYSE:ATUS) is a telecommunications company offering cable, internet, telephone, and television services across the United States.

Why Do We Pass on ATUS?

1. Performance surrounding its broadband subscribers has lagged its peers

2. Sales were less profitable over the last five years as its earnings per share fell by 27.4% annually, worse than its revenue declines

3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Altice is trading at $2.34 per share, or 0.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than ATUS.

Topgolf Callaway (MODG)

Consensus Price Target: $8.42 (40.1% implied return)

Formed between the merger of Callaway and Topgolf, Topgolf Callaway (NYSE:MODG) sells golf equipment and operates technology-driven golf entertainment venues.

Why Should You Sell MODG?

1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share

2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 22.6% annually

3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Topgolf Callaway’s stock price of $6.01 implies a valuation ratio of 2.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including MODG in your portfolio, it’s free.

One Stock to Buy:

Monday.com (MNDY)

Consensus Price Target: $349.20 (14.8% implied return)

Founded in 2014 and named after the dreaded first day of the work week, Monday.com (NASDAQ:MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently.

Why Is MNDY a Good Business?

1. ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability

2. Prominent and differentiated software culminates in a best-in-class gross margin of 89.5%

3. MNDY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders