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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Fluence Energy (FLNC)
Consensus Price Target: $18.67 (35.4% implied return)
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ: FLNC) helps store renewable energy sources with battery systems.
Why Does FLNC Give Us Pause?
- Earnings per share fell by 3.6% annually over the last two years while its revenue grew, partly because it diluted shareholders
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $13.79 per share, Fluence Energy trades at 19.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than FLNC.
Howard Hughes Holdings (HHH)
Consensus Price Target: $89.67 (36.5% implied return)
Named after the eccentric business magnate and aviator whose legacy lives on in real estate development, Howard Hughes Holdings (NYSE: HHH) develops, owns, and manages master-planned communities and commercial properties across the United States.
Why Are We Bearish on HHH?
- Annual revenue growth of 16.2% over the last five years was below our standards for the consumer discretionary sector
- Returns on capital are growing as management invests in more worthwhile ventures
- High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Howard Hughes Holdings’s stock price of $65.69 implies a valuation ratio of 2.6x trailing 12-month price-to-sales. If you’re considering HHH for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Applied Materials (AMAT)
Consensus Price Target: $627.66 (20.8% implied return)
Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ: AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Why Do We Like AMAT?
- Demand will likely accelerate over the next 12 months as its forecasted revenue growth of 34.9% is above its two-year trend
- Healthy operating margin of 29.1% shows it’s a well-run company with efficient processes
- Industry-leading 46.2% return on capital demonstrates management’s skill in finding high-return investments
Applied Materials is trading at $519.55 per share, or 29.2x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
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.
