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. Keeping that in mind, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
Lowe's (LOW)
Consensus Price Target: $276.25 (24.5% implied return)
Founded in North Carolina as Lowe's North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials.
Why Does LOW Worry Us?
- Ongoing store closures and lackluster same-store sales indicate sluggish demand and a focus on consolidation
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Projected sales are flat for the next 12 months, implying demand will slow from its five-year trend
Lowe's is trading at $221.88 per share, or 17.9x forward P/E. If you’re considering LOW for your portfolio, see our FREE research report to learn more.
Hillman (HLMN)
Consensus Price Target: $11.71 (66.6% implied return)
Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.
Why Is HLMN Not Exciting?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Responsiveness to unforeseen market trends is restricted due to its substandard operating profitability
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Hillman’s stock price of $7.03 implies a valuation ratio of 12.4x forward P/E. Read our free research report to see why you should think twice about including HLMN in your portfolio.
BWX (BWXT)
Consensus Price Target: $134.73 (21.3% implied return)
Contributing components and materials to the famous Manhattan Project in the 1940s, BWX (NYSE:BWXT) is a manufacturer and service provider of nuclear components and fuel for government and commercial industries.
Why Does BWXT Give Us Pause?
- Annual revenue growth of 7.4% over the last five years was below our standards for the industrials sector
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 3.2% annually
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $111.10 per share, BWX trades at 32x forward P/E. To fully understand why you should be careful with BWXT, check out our full research report (it’s free).
Stocks That Overcame Trump’s 2018 Tariffs
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.