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 excitement appears well-founded and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Parsons (PSN)
Consensus Price Target: $69.64 (22.8% implied return)
Delivering aerospace technology during the Cold War-era, Parsons (NYSE: PSN) offers engineering, construction, and cybersecurity solutions for the infrastructure and defense sectors.
Why Are We Wary of PSN?
- Sales trends were unexciting over the last two years as its 4.2% annual growth was below the typical industrials company
- Flat backlog over the past two years has disappointed and shows fewer customers signed long-term contracts
- Underwhelming 7% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $56.71 per share, Parsons trades at 16.9x forward P/E. Check out our free in-depth research report to learn more about why PSN doesn’t pass our bar.
Genco (GNK)
Consensus Price Target: $29.25 (23.2% implied return)
Headquartered in NYC, Genco (NYSE: GNK) is a shipping company that transports dry bulk cargo along worldwide maritime routes.
Why Is GNK Risky?
- Number of owned vessels has disappointed over the past two years, indicating weak demand for its offerings
- Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 32.6% annually
- Free cash flow margin dropped by 97.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Genco’s stock price of $23.75 implies a valuation ratio of 7.1x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including GNK in your portfolio.
One Stock to Watch:
Workiva (WK)
Consensus Price Target: $78.73 (60.7% implied return)
Nicknamed "the Excel killer" by some finance professionals for its ability to eliminate spreadsheet chaos, Workiva (NYSE: WK) provides a cloud-based platform that enables organizations to streamline financial reporting, ESG, and compliance processes with connected data and automation.
Why Are We Positive on WK?
- Ability to secure long-term commitments with customers is evident in its 22.1% ARR growth over the last year
- Superior software functionality and low servicing costs result in a top-tier gross margin of 79.4%
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Workiva is trading at $48.98 per share, or 2.7x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
