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.
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 its enthusiasm might be excessive.
Two Stocks to Sell:
RH (RH)
Consensus Price Target: $254.12 (45.6% implied return)
Formerly known as Restoration Hardware, RH (NYSE: RH) is a specialty retailer that exclusively sells its own brand of high-end furniture and home decor.
Why Do We Think Twice About RH?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Negative free cash flow raises questions about the return timeline for its investments
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
RH is trading at $174.58 per share, or 16.6x forward P/E. Check out our free in-depth research report to learn more about why RH doesn’t pass our bar.
El Pollo Loco (LOCO)
Consensus Price Target: $14 (48.9% implied return)
With a name that translates into ‘The Crazy Chicken’, El Pollo Loco (NASDAQ: LOCO) is a fast food chain known for its citrus-marinated, fire-grilled chicken recipe that hails from the coastal town of Sinaloa, Mexico.
Why Should You Sell LOCO?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
- Smaller revenue base of $479.7 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Anticipated sales growth of 4.7% for the next year implies demand will be shaky
El Pollo Loco’s stock price of $9.40 implies a valuation ratio of 10.9x forward P/E. Read our free research report to see why you should think twice about including LOCO in your portfolio.
One Stock to Watch:
KBR (KBR)
Consensus Price Target: $60.71 (40% implied return)
Known for projects like the construction of Guantanamo Bay, KBR provides professional services and technologies, specializing in engineering, construction, and government services sectors.
Why Does KBR Stand Out?
- Solid 9.9% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- Operating margin improvement of 6.3 percentage points over the last five years demonstrates its ability to scale efficiently
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $43.38 per share, KBR trades at 10.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum 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-micro-cap company Tecnoglass (+1,754% 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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