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 analysts may be overlooking some important risks.
Two Stocks to Sell:
Nature's Sunshine (NATR)
Consensus Price Target: $21.50 (38.6% implied return)
Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ: NATR) manufactures and sells nutritional and personal care products.
Why Do We Think Twice About NATR?
- Flat sales over the last three years suggest it must innovate and find new ways to grow
- Subscale operations are evident in its revenue base of $460.8 million, meaning it has fewer distribution channels than its larger rivals
- Projected sales growth of 1.3% for the next 12 months suggests sluggish demand
Nature's Sunshine’s stock price of $15.51 implies a valuation ratio of 19.1x forward P/E. To fully understand why you should be careful with NATR, check out our full research report (it’s free).
ABM (ABM)
Consensus Price Target: $58 (27.1% implied return)
With roots dating back to 1909 as a window washing company, ABM Industries (NYSE: ABM) provides integrated facility management, infrastructure, and mobility solutions across various sectors including commercial, manufacturing, education, and aviation.
Why Does ABM Fall Short?
- 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
- Annual earnings per share growth of 1.2% underperformed its revenue over the last two years, showing its incremental sales were less profitable
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.4 percentage points
ABM is trading at $45.63 per share, or 11.3x forward P/E. Dive into our free research report to see why there are better opportunities than ABM.
One Stock to Buy:
Inter Parfums (IPAR)
Consensus Price Target: $163.33 (62.9% implied return)
With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ: IPAR) manufactures and distributes fragrances worldwide.
Why Are We Backing IPAR?
- 14.6% annual revenue growth over the last three years surpassed the sector average as its brand resonated with consumers
- Free cash flow margin jumped by 8.7 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Industry-leading 27.4% return on capital demonstrates management’s skill in finding high-return investments
At $100.24 per share, Inter Parfums trades at 18.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 9 Market-Beating Stocks. 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-micro-cap company Kadant (+351% 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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