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:
Douglas Dynamics (PLOW)
Consensus Price Target: $37.67 (20.6% implied return)
Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE: PLOW) offers snow and ice equipment for the roads and sidewalks.
Why Should You Dump PLOW?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2.7% annually over the last two years
- Efficiency has decreased over the last five years as its operating margin fell by 3.8 percentage points
- Free cash flow margin dropped by 4.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Douglas Dynamics’s stock price of $31.24 implies a valuation ratio of 14.3x forward P/E. Check out our free in-depth research report to learn more about why PLOW doesn’t pass our bar.
First American Financial (FAF)
Consensus Price Target: $77 (20.5% implied return)
Tracing its roots back to 1889 when California was experiencing its first major real estate boom, First American Financial (NYSE: FAF) provides title insurance, settlement services, and risk solutions for residential and commercial real estate transactions across the United States and internationally.
Why Is FAF Risky?
- Stagnant net premiums earned over the last two years suggest the firm needs alternative growth strategies
- Costs have risen faster than its revenue over the last four years, causing its pre-tax profit margin to decline by 12.1 percentage points
- Flat earnings per share over the last five years lagged its peers
First American Financial is trading at $63.88 per share, or 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than FAF.
One Stock to Watch:
P10 (PX)
Consensus Price Target: $15.75 (44.5% implied return)
Operating as a bridge between institutional investors and hard-to-access private market opportunities, P10 (NYSE: PX) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets.
Why Could PX Be a Winner?
- Impressive 41.3% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings growth has massively outpaced its peers over the last three years as its EPS has compounded at 36.5% annually
At $10.90 per share, P10 trades at 10.9x forward P/E. Is now the time to initiate a position? Find out in our full 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 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 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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