The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, 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:
YETI (YETI)
Consensus Price Target: $54.53 (29.6% implied return)
Founded by two brothers from Texas, YETI (NYSE: YETI) specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.
Why Is YETI Risky?
- Annual revenue growth of 8.7% over the last five years was below our standards for the consumer discretionary sector
- Free cash flow margin is not anticipated to grow over the next year
- Returns on capital haven’t budged, indicating management couldn’t drive additional value creation
YETI is trading at $42.09 per share, or 13.6x forward P/E. Dive into our free research report to see why there are better opportunities than YETI.
Leonardo DRS (DRS)
Consensus Price Target: $54.10 (40.1% implied return)
Developing submarine detection systems for the U.S. Navy, Leonardo DRS (NASDAQ: DRS) is a provider of defense systems, electronics, and military support services.
Why Does DRS Worry Us?
- Sales trends were unexciting over the last five years as its 5.6% annual growth was below the typical industrials company
- Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 6.8% declines over the past two years
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $38.62 per share, Leonardo DRS trades at 28.7x forward P/E. If you’re considering DRS for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Enpro (NPO)
Consensus Price Target: $389.50 (26.2% implied return)
Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE: NPO) designs, manufactures, and sells products used for machinery in various industries.
Why Should NPO Be on Your Watchlist?
- Offerings are mission-critical for businesses and lead to a top-tier gross margin of 41.1%
- Earnings per share grew by 15.9% annually over the last two years, massively outpacing its peers
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Enpro’s stock price of $308.71 implies a valuation ratio of 29.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
