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3 of Wall Street’s Favorite Stocks with Questionable Fundamentals

TWI Cover Image

Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.

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 are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.

Titan International (TWI)

Consensus Price Target: $11.75 (62.1% implied return)

Acquiring Goodyear’s farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.

Why Do We Avoid TWI?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 7.4% annually over the last two years
  2. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 14%
  3. Sales were less profitable over the last two years as its earnings per share fell by 93.4% annually, worse than its revenue declines

At $7.25 per share, Titan International trades at 20x forward P/E. Dive into our free research report to see why there are better opportunities than TWI.

Brady (BRC)

Consensus Price Target: $87 (25.2% implied return)

Founded in 1914 and evolving through more than a century of industrial innovation, Brady (NYSE: BRC) manufactures and supplies identification solutions and workplace safety products that help companies identify and protect their premises, products, and people.

Why Are We Cautious About BRC?

  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. Smaller revenue base of $1.46 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  3. Free cash flow margin shrank by 3.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Brady’s stock price of $69.47 implies a valuation ratio of 14.1x forward P/E. To fully understand why you should be careful with BRC, check out our full research report (it’s free).

Interpublic Group (IPG)

Consensus Price Target: $34.27 (45.5% implied return)

With a history dating back to 1902 and roots in the McCann-Erickson agency, Interpublic Group (NYSE: IPG) is a marketing and communications holding company that owns agencies specializing in advertising, media buying, public relations, and digital marketing services.

Why Do We Pass on IPG?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Sales are projected to tank by 3.2% over the next 12 months as its demand continues evaporating
  3. Free cash flow margin shrank by 9.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Interpublic Group is trading at $23.55 per share, or 8.5x forward P/E. If you’re considering IPG for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

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