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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here is one stock where Wall Street’s excitement appears well-founded and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Spectrum Brands (SPB)
Consensus Price Target: $78.71 (43.8% implied return)
A leader in multiple consumer product categories, Spectrum Brands (NYSE: SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.
Why Do We Avoid SPB?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $54.73 per share, Spectrum Brands trades at 13.3x forward P/E. Check out our free in-depth research report to learn more about why SPB doesn’t pass our bar.
WillScot Mobile Mini (WSC)
Consensus Price Target: $34.33 (46.8% implied return)
Originally focusing on mobile offices for construction sites, WillScot (NASDAQ: WSC) provides ready-to-use temporary spaces, largely for longer-term lease.
Why Does WSC Give Us Pause?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- 6.9 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
WillScot Mobile Mini’s stock price of $23.39 implies a valuation ratio of 13.5x forward P/E. Dive into our free research report to see why there are better opportunities than WSC.
One Stock to Watch:
Limbach (LMB)
Consensus Price Target: $137.25 (24.6% implied return)
Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.
Why Do We Like LMB?
- Operating margin improved by 6.2 percentage points over the last five years as it eliminated redundant costs
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 45.1% annually, topping its revenue gains
- Free cash flow margin increased by 5.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Limbach is trading at $110.16 per share, or 25.4x 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
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% 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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