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.
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 analysts may be overlooking some important risks.
Two Stocks to Sell:
Freshpet (FRPT)
Consensus Price Target: $86 (72.9% implied return)
Standing out from typical processed pet foods, Freshpet (NASDAQ: FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.
Why Are We Wary of FRPT?
- Subscale operations are evident in its revenue base of $1.04 billion, meaning it has fewer distribution channels than its larger rivals
- Cash-burning history makes us doubt the long-term viability of its business model
- Negative returns on capital show management lost money while trying to expand the business
At $49.74 per share, Freshpet trades at 32x forward P/E. To fully understand why you should be careful with FRPT, check out our full research report (it’s free).
Hillman (HLMN)
Consensus Price Target: $12.38 (36.6% implied return)
Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ: HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.
Why Does HLMN Give Us Pause?
- 1.6% annual revenue growth over the last two years was slower than its industrials peers
- Poor expense management has led to an operating margin of 3.9% that is below the industry average
- Low returns on capital reflect management’s struggle to allocate funds effectively
Hillman is trading at $9.06 per share, or 16.5x forward P/E. Dive into our free research report to see why there are better opportunities than HLMN.
One Stock to Buy:
Samsara (IOT)
Consensus Price Target: $48.20 (26% implied return)
From sensors on vehicles to AI-powered cameras that help prevent accidents, Samsara (NYSE: IOT) is a cloud-based Internet of Things platform that helps businesses improve the safety, efficiency, and sustainability of their physical operations.
Why Will IOT Beat the Market?
- Customers view its software as mission-critical to their operations as its ARR has averaged 31.8% growth over the last year
- Estimated revenue growth of 21.2% for the next 12 months implies its momentum over the last two years will continue
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Samsara’s stock price of $38.26 implies a valuation ratio of 12.7x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth 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 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).
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