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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here is one stock where Wall Street’s excitement appears well-founded and two where its enthusiasm might be excessive.

Two IndustrialsStocks to Sell:

Icahn Enterprises (IEP)

Consensus Price Target: $12 (46.3% implied return)

Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.

Why Are We Cautious About IEP?

1. Annual sales declines of 14.1% for the past two years show its products and services struggled to connect with the market during this cycle
2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
3. EBITDA losses may force it to accept punitive lending terms or high-cost debt

Icahn Enterprises is trading at $8.20 per share, or 0.4x forward price-to-sales. To fully understand why you should be careful with IEP, check out our full research report (it’s free).

Sunrun (RUN)

Consensus Price Target: $10.62 (36.3% implied return)

Helping homeowners use solar energy to power their homes, Sunrun (NASDAQ: RUN) provides residential solar electricity, specializing in panel installation and leasing services.

Why Does RUN Give Us Pause?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 7.1% annually over the last two years
2. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Sunrun’s stock price of $7.79 implies a valuation ratio of 11x forward EV-to-EBITDA. If you’re considering RUN for your portfolio, see our FREE research report to learn more.

One Industrials Stock to Buy:

Distribution Solutions (DSGR)

Consensus Price Target: $37.50 (35.2% implied return)

Founded in 1952, Distribution Solutions (NASDAQ: DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.

Why Is DSGR a Good Business?

1. Impressive 17.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Additional sales over the last two years increased its profitability as the 24.9% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin grew by 3.8 percentage points over the last five years, giving the company more chips to play with

At $27.74 per share, Distribution Solutions trades at 16x forward P/E. 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

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. 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