1 of Wall Street’s Favorite Stocks for Long-Term Investors and 2 We Ignore

Barchart·06/08/2026 04:56:20

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 consensus estimates seem disconnected from reality.

Two Stocks to Sell:

Carnival (CCL)

Consensus Price Target: $34.59 (26.8% implied return)

Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE:CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.

Why Do We Think CCL Will Underperform?

1. Demand for its offerings was relatively low as its number of passenger cruise days has underwhelmed
2. Poor free cash flow margin of 9.5% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Underwhelming 0.1% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $27.28 per share, Carnival trades at 12.8x forward P/E. Read our free research report to see why you should think twice about including CCL in your portfolio.

Strategy (MSTR)

Consensus Price Target: $351.54 (192% implied return)

Once a traditional business intelligence software provider, Strategy (NASDAQ:MSTR) develops AI-powered enterprise analytics software while also functioning as a major corporate holder of Bitcoin cryptocurrency.

Why Should You Dump MSTR?

1. MicroStrategy’s core analytics software has been eclipsed by its all-in Bitcoin strategy, leaving product innovation and enterprise deals starved for attention
2. The company’s debt-financed Bitcoin buying ties shareholder fortunes to crypto swings and interest rates, amplifying downside risk and uncertainty
3. On the bright side, its vast Bitcoin treasury gives Executive Chairman Michael Saylor a unique springboard to capture crypto upside and court investors seeking leveraged exposure to digital assets

Strategy’s stock price of $120.27 implies a valuation ratio of 84.9x forward price-to-sales. If you’re considering MSTR for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Tradeweb Markets (TW)

Consensus Price Target: $135.93 (32.5% implied return)

Founded in 1996 as one of the pioneers in electronic bond trading, Tradeweb Markets (NASDAQ:TW) builds and operates electronic marketplaces that connect financial institutions for trading across rates, credit, equities, and money markets.

Why Is TW a Top Pick?

1. Market share has increased this cycle as its 23.4% annual revenue growth over the last two years was exceptional
2. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 23.5% annually

Tradeweb Markets is trading at $102.59 per share, or 24.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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