Financial News

1 of Wall Street’s Favorite Stock to Keep an Eye On and 2 We Brush Off

NCLH Cover Image

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.

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

Two Stocks to Sell:

Norwegian Cruise Line (NCLH)

Consensus Price Target: $30.26 (19.4% implied return)

With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE: NCLH) is a premier global cruise company.

Why Are We Cautious About NCLH?

  1. Sluggish trends in its passenger cruise days suggest customers aren’t adopting its solutions as quickly as the company hoped
  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

Norwegian Cruise Line is trading at $25.33 per share, or 11.4x forward P/E. If you’re considering NCLH for your portfolio, see our FREE research report to learn more.

Royalty Pharma (RPRX)

Consensus Price Target: $43.27 (21.5% implied return)

Pioneering a unique business model in the pharmaceutical industry since 1996, Royalty Pharma (NASDAQ: RPRX) acquires rights to receive portions of sales from successful biopharmaceutical products, providing funding to drug developers without conducting research itself.

Why Does RPRX Give Us Pause?

  1. Annual sales declines of 1.2% for the past two years show its products and services struggled to connect with the market during this cycle
  2. Modest revenue base of $2.31 billion gives it less fixed cost leverage and fewer distribution channels than larger companies

At $35.62 per share, Royalty Pharma trades at 7.2x forward P/E. Dive into our free research report to see why there are better opportunities than RPRX.

One Stock to Watch:

Dave (DAVE)

Consensus Price Target: $271.86 (21.3% implied return)

Named after the biblical David fighting financial Goliaths, Dave (NASDAQ: DAVE) is a digital financial services platform that helps Americans living paycheck to paycheck with cash advances, banking services, and tools to improve their financial health.

Why Should DAVE Be on Your Watchlist?

  1. Annual revenue growth of 35.3% over the last two years was superb and indicates its market share increased during this cycle
  2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 82% outpaced its revenue gains

Dave’s stock price of $224.06 implies a valuation ratio of 23.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. 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).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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