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 likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Helios (HLIO)
Consensus Price Target: $94.67 (36.1% implied return)
Founded on the principle of treating others as one wants to be treated, Helios (NYSE: HLIO) designs, manufactures, and sells motion and electronic control components for various sectors.
Why Is HLIO Not Exciting?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Efficiency has decreased over the last five years as its operating margin fell by 7.1 percentage points
- Performance over the past five years was negatively impacted by new share issuances as its earnings per share were flat while its revenue grew
At $69.54 per share, Helios trades at 20.4x forward P/E. Read our free research report to see why you should think twice about including HLIO in your portfolio.
Viavi Solutions (VIAV)
Consensus Price Target: $61.43 (36.3% implied return)
Once known as JDS Uniphase before its 2015 rebranding, Viavi Solutions (NASDAQ: VIAV) provides testing, monitoring and assurance solutions for telecommunications, cloud, enterprise, military, and other critical networks and infrastructure.
Why Does VIAV Worry Us?
- Annual revenue growth of 4.8% over the last five years was below our standards for the industrials sector
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 7.4 percentage points
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Viavi Solutions’s stock price of $45.08 implies a valuation ratio of 26.8x forward P/E. To fully understand why you should be careful with VIAV, check out our full research report (it’s free).
One Stock to Watch:
Napco (NSSC)
Consensus Price Target: $50.67 (40% implied return)
Protecting everything from schools to government facilities since 1969, Napco Security Technologies (NASDAQ: NSSC) manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems.
Why Is NSSC on Our Radar?
- Annual revenue growth of 12.1% over the past five years was outstanding, reflecting market share gains this cycle
- Strong free cash flow margin of 20.6% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
- Improving returns on capital reflect management’s ability to monetize investments
Napco is trading at $36.19 per share, or 21.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
