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. That said, 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:
Bath and Body Works (BBWI)
Consensus Price Target: $37.97 (68.4% implied return)
Spun off from L Brands in 2020, Bath & Body Works (NYSE: BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.
Why Are We Wary of BBWI?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Estimated sales growth of 2% for the next 12 months implies demand will slow from its six-year trend
- Earnings growth over the last six years fell short of the peer group average as its EPS only increased by 8.5% annually
At $22.55 per share, Bath and Body Works trades at 6.4x forward P/E. If you’re considering BBWI for your portfolio, see our FREE research report to learn more.
Fidelity National Financial (FNF)
Consensus Price Target: $70.25 (22.2% implied return)
Issuing more title insurance policies than any other company in the United States, Fidelity National Financial (NYSE: FNF) provides title insurance and escrow services for real estate transactions while also offering annuities and life insurance through its F&G subsidiary.
Why Are We Cautious About FNF?
- Net premiums earned remained stagnant over the last five years, indicating expansion challenges this cycle
- Costs have risen faster than its revenue over the last four years, causing its pre-tax profit margin to decline by 11.5 percentage points
- Flat book value per share over the last five years suggest it must find different ways to enhance shareholder value during this cycle
Fidelity National Financial is trading at $57.50 per share, or 1.6x forward P/B. To fully understand why you should be careful with FNF, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
BellRing Brands (BRBR)
Consensus Price Target: $50 (76.1% implied return)
Spun out of Post Holdings in 2019, Bellring Brands (NYSE: BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.
Why Does BRBR Stand Out?
- Products are selling at a rapid clip as its unit sales averaged an outstanding 20.1% growth rate over the past two years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 27.8% exceeded its revenue gains over the last three years
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
BellRing Brands’s stock price of $28.40 implies a valuation ratio of 12.8x forward P/E. Is now the time to initiate a position? See for yourself 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 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-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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