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. That said, 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:
Interface (TILE)
Consensus Price Target: $32.67 (24.7% implied return)
Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ: TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions.
Why Are We Wary of TILE?
- Muted 1.8% annual revenue growth over the last five years shows its demand lagged behind its business services peers
- Earnings per share lagged its peers over the last five years as they only grew by 1.9% annually
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $26.19 per share, Interface trades at 14.7x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TILE.
GEO Group (GEO)
Consensus Price Target: $39 (85.4% implied return)
With a global footprint spanning three continents and approximately 81,000 beds across 100 facilities, GEO Group (NYSE: GEO) operates secure facilities, processing centers, and reentry services for government agencies in the United States, Australia, and South Africa.
Why Do We Steer Clear of GEO?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 12% annually
- 7.3 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
GEO Group’s stock price of $21.03 implies a valuation ratio of 11.3x forward P/E. Check out our free in-depth research report to learn more about why GEO doesn’t pass our bar.
One Stock to Watch:
WD-40 (WDFC)
Consensus Price Target: $277.50 (29.9% implied return)
Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ: WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.
Why Is WDFC on Our Radar?
- Unique products and pricing power are reflected in its stellar gross margin of 53.8%
- Robust free cash flow margin of 15.4% gives it many options for capital deployment
- ROIC punches in at 27.5%, illustrating management’s expertise in identifying profitable investments
WD-40 is trading at $213.66 per share, or 36x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound 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 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 Exlservice (+354% 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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