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1 of Wall Street’s Favorite Stock to Target This Week and 2 to Think Twice About
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Concrete Pumping (BBCP)
Consensus Price Target: $7.58 (28.1% implied return)
Going public via SPAC in 2018, Concrete Pumping (NASDAQ:BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.
Why Are We Cautious About BBCP?
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Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
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Earnings per share have contracted by 17% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
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9.7 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Concrete Pumping’s stock price of $5.66 implies a valuation ratio of 12.6x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than BBCP .
Enovis (ENOV)
Consensus Price Target: $66 (97.1% implied return)
With a focus on helping patients regain or maintain their natural motion, Enovis (NYSE:ENOV) develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation.
Why Do We Steer Clear of ENOV?
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Customers postponed purchases of its products and services this cycle as its revenue declined by 8.7% annually over the last five years
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Negative returns on capital show that some of its growth strategies have backfired, and its shrinking returns suggest its past profit sources are losing steam
Enovis is trading at $32.58 per share, or 10.2x forward price-to-earnings. To fully understand why you should be careful with ENOV, check out our full research report (it’s free) .
One Stock to Buy:
Deckers (DECK)
Consensus Price Target: $217.06 (80.8% implied return)
Established in 1973, Deckers (NYSE:DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands.
Why Will DECK Outperform?
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Annual revenue growth of 18% over the last five years beat the sector average and underscores the popularity of its brand
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Free cash flow margin is on track to jump by 2.8 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends
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Rising returns on capital show management is finding more attractive investment opportunities
At $109.50 per share, Deckers trades at 17.3x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free .
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free .