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1 of Wall Street’s Favorite Stock to Target This Week and 2 We Find Risky

LUCK Cover Image

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. Keeping that in mind, here is one stock where Wall Street’s excitement appears well-founded and two where consensus estimates seem disconnected from reality.

Two Stocks to Sell:

Lucky Strike (LUCK)

Consensus Price Target: $13.25 (38.3% implied return)

Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike (NYSE: LUCK) operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.

Why Do We Pass on LUCK?

  1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
  2. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Lucky Strike’s stock price of $9.58 implies a valuation ratio of 32x forward P/E. Check out our free in-depth research report to learn more about why LUCK doesn’t pass our bar.

Hope Bancorp (HOPE)

Consensus Price Target: $12.25 (23.9% implied return)

With roots in serving Korean-American communities and now expanded to a multi-ethnic clientele across 12 states, Hope Bancorp (NASDAQ: HOPE) operates Bank of Hope, providing commercial and retail banking services with a focus on serving multi-ethnic communities across the United States.

Why Do We Think HOPE Will Underperform?

  1. Net interest income stagnated over the last five years and signal the need for new growth strategies
  2. Operating profits fell over the last four years as its sales dropped and it struggled to adjust its fixed costs
  3. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable

Hope Bancorp is trading at $9.89 per share, or 0.6x forward P/B. Read our free research report to see why you should think twice about including HOPE in your portfolio.

One Stock to Buy:

Globalstar (GSAT)

Consensus Price Target: $52.50 (102% implied return)

Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ: GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.

Why Is GSAT a Top Pick?

  1. Annual revenue growth of 16.3% over the past two years was outstanding, reflecting market share gains this cycle
  2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 48.6% outpaced its revenue gains
  3. GSAT is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy

At $26 per share, Globalstar trades at 44.7x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s April 2024 "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 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 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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