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 are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where consensus estimates seem disconnected from reality.
One Stock to Sell:
Interface (TILE)
Consensus Price Target: $33.33 (29.4% implied return)
Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ: TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions.
Why Are We Wary of TILE?
- 3.3% annual revenue growth over the last five years was slower than its business services peers
- Revenue base of $1.37 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Underwhelming 11.5% return on capital reflects management’s difficulties in finding profitable growth opportunities
Interface’s stock price of $25.76 implies a valuation ratio of 30.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including TILE in your portfolio.
Two Stocks to Watch:
Abercrombie and Fitch (ANF)
Consensus Price Target: $104.78 (45.4% implied return)
Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.
Why Could ANF Be a Winner?
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 13.5% growth over the past two years
- Differentiated product assortment leads to a best-in-class gross margin of 63.6%
- Earnings growth has trumped its peers over the last six years as its EPS has compounded at 48.1% annually
Abercrombie and Fitch is trading at $72.08 per share, or 7.3x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Progressive (PGR)
Consensus Price Target: $259.13 (19.2% implied return)
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE: PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
Why Are We Backing PGR?
- Net premiums earned surged by 19.5% annually over the past two years, reflecting strong market share gains this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 93.9% annually, topping its revenue gains
- Annual book value per share growth of 44.6% over the last two years was superb and indicates its capital strength increased during this cycle
At $217.45 per share, Progressive trades at 3.5x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
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-micro-cap company Tecnoglass (+1,754% 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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