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 are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.

Wolverine Worldwide (WWW)

Consensus Price Target: $20.78 (23.5% implied return)

Founded in 1883, Wolverine Worldwide (NYSE: WWW) is a global footwear company with a diverse portfolio of brands including Merrell, Hush Puppies, and Saucony.

Why Do We Pass on WWW?

1. Products and services have few die-hard fans as sales have declined by 4.1% annually over the last five years
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. Negative returns on capital show management lost money while trying to expand the business

At $16.82 per share, Wolverine Worldwide trades at 15.2x forward P/E. If you’re considering WWW for your portfolio, see our FREE research report to learn more.

Applied Industrial (AIT)

Consensus Price Target: $277.86 (24.6% implied return)

Formerly called The Ohio Ball Bearing Company, Applied Industrial (NYSE: AIT) distributes industrial products–everything from power tools to industrial valves–and services to a wide variety of industries.

Why Is AIT Not Exciting?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Projected sales growth of 5% for the next 12 months suggests sluggish demand
3. Free cash flow margin has shown no improvement over the last five years

Applied Industrial is trading at $223.01 per share, or 20.9x forward P/E. Dive into our free research report to see why there are better opportunities than AIT.

Hillenbrand (HI)

Consensus Price Target: $31.25 (62.2% implied return)

Hillenbrand, Inc. (NYSE: HI) is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.

Why Should You Sell HI?

1. 7.2% annual revenue growth over the last five years was slower than its industrials peers
2. Incremental sales over the last two years were much less profitable as its earnings per share fell by 5.9% annually while its revenue grew
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 14.7 percentage points

Hillenbrand’s stock price of $19.27 implies a valuation ratio of 7.5x forward P/E. Read our free research report to see why you should think twice about including HI in your portfolio.

Stocks We Like More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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 176% over the last five years.

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.