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.

Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. That said, here is one stock poised to prove Wall Street wrong and two where the outlook is warranted.

Two Stocks to Sell:

Monarch (MCRI)

Consensus Price Target: $100.20 (-2.6% implied return)

Established in 1993, Monarch (NASDAQ: MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.

Why Are We Hesitant About MCRI?

1. Annual revenue growth of 4% over the last two years was below our standards for the consumer discretionary sector
2. Anticipated sales growth of 4.5% for the next year implies demand will be shaky

At $102.85 per share, Monarch trades at 20.6x forward P/E. To fully understand why you should be careful with MCRI, check out our full research report (it’s free).

Lincoln Electric (LECO)

Consensus Price Target: $256.30 (8.4% implied return)

Headquartered in Ohio, Lincoln Electric (NASDAQ: LECO) manufactures and sells welding equipment for various industries.

Why Does LECO Fall Short?

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. Projected sales growth of 6.3% for the next 12 months suggests sluggish demand
3. Earnings per share lagged its peers over the last two years as they only grew by 5.2% annually

Lincoln Electric’s stock price of $236.50 implies a valuation ratio of 24.3x forward P/E. Check out our free in-depth research report to learn more about why LECO doesn’t pass our bar.

One Stock to Buy:

AutoZone (AZO)

Consensus Price Target: $4,516 (9.2% implied return)

Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE: AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.

Why Should You Buy AZO?

1. New store openings and solid same-store sales performance have boosted its top-line growth
2. Unique assortment of products and pricing power are reflected in its best-in-class gross margin of 52.9%
3. Healthy operating margin of 19.8% shows it’s a well-run company with efficient processes

AutoZone is trading at $4,136 per share, or 24.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 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-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

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.