Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. That said, here are two stocks poised to prove Wall Street wrong and one facing legitimate challenges.
One Stock to Sell:
Allient (ALNT)
Consensus Price Target: $45 (-3.7% implied return)
Founded in 1962, Allient (NASDAQ: ALNT) develops and manufactures precision and specialty-controlled motion components and systems.
Why Does ALNT Worry Us?
- Sales tumbled by 3.5% annually over the last two years, showing market trends are working against its favor during this cycle
- Performance over the past two years was negatively impacted by new share issuances as its earnings per share dropped by 12.6% annually, worse than its revenue
- Underwhelming 8% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its falling returns suggest its earlier profit pools are drying up
Allient is trading at $46.73 per share, or 22.6x forward P/E. If you’re considering ALNT for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
Sea (SE)
Consensus Price Target: $196.12 (4.1% implied return)
Founded in 2009 and a publicly traded company since 2017, Sea (NYSE: SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.
Why Is SE a Top Pick?
- Paying Users have grown by 15.3% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Platform’s growing usage and its ability to increase user spending by 12.9% annually showcases its high switching costs
- Free cash flow margin expanded by 36.4 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Sea’s stock price of $188.45 implies a valuation ratio of 67x forward EV/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
WEBTOON (WBTN)
Consensus Price Target: $15.33 (4.2% implied return)
Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment (NASDAQ: WBTN) operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.
Why Are We Bullish on WBTN?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 7.5% annual sales growth over the last two years
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 13.6%
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 79.7% annually, topping its revenue gains
At $14.72 per share, WEBTOON trades at 46.9x 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
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our 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-small-cap company Comfort Systems (+782% 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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