Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. Keeping that in mind, here are two stocks where you should be greedy instead of fearful and one where the skepticism is well-placed.
One Stock to Sell:
Williams-Sonoma (WSM)
Consensus Price Target: $204.32 (10.8% implied return)
Started in 1956 as a store specializing in French cookware, Williams-Sonoma (NYSE: WSM) is a specialty retailer of higher-end kitchenware, home goods, and furniture.
Why Are We Hesitant About WSM?
- Store closures and poor same-store sales reveal weak demand and a push toward operational efficiency
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Free cash flow margin shrank by 3.7 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
At $184.43 per share, Williams-Sonoma trades at 21.4x forward P/E. To fully understand why you should be careful with WSM, check out our full research report (it’s free for active Edge members).
Two Stocks to Watch:
SmartRent (SMRT)
Consensus Price Target: $1.73 (18.9% implied return)
Founded by an employee at a real estate rental company, SmartRent (NYSE: SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
Why Do We Watch SMRT?
- Offerings are pivotal for their customers' operations as its ARR has averaged 22.9% growth over the past two years
- Earnings growth has trumped its peers over the last three years as its EPS has compounded at 24.1% annually
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
SmartRent’s stock price of $1.45 implies a valuation ratio of 97.2x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Berkshire Hathaway (BRK.A)
Consensus Price Target: $768,440 (0.6% implied return)
Led by legendary investor Warren Buffett since 1965, transforming it from a struggling textile manufacturer into a corporate giant, Berkshire Hathaway (NYSE: BRK.A) is a diversified holding company that owns businesses across insurance, railroads, utilities, manufacturing, retail, and services sectors.
Why Is BRK.A Interesting?
- Earnings growth has comfortably beaten the peer group average over the last two years as its EPS has compounded at 18.9% annually
- Annual tangible book value per share growth of 15.9% over the last five years was superb and indicates its capital strength increased during this cycle
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Berkshire Hathaway is trading at $763,865 per share, or 23.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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