3 of Wall Street's Favorite Stocks We Keep Off Our Radar

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.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.

Entegris (ENTG)

Consensus Price Target: $99 (23.5% implied return)

With fabs representing the company’s largest customer type, Entegris (NASDAQ:ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Why Should You Sell ENTG?

1. Sales tumbled by 7.5% annually over the last two years, showing market trends are working against its favor during this cycle
2. Estimated sales growth of 2.2% for the next 12 months is soft and implies weaker demand
3. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 6.7 percentage points

Entegris is trading at $80.13 per share, or 24.7x forward P/E. Dive into our free research report to see why there are better opportunities than ENTG.

Lovesac (LOVE)

Consensus Price Target: $30.17 (50.8% implied return)

Known for its oversized, premium beanbags, Lovesac (NASDAQ:LOVE) is a specialty furniture brand selling modular furniture.

Why Do We Think Twice About LOVE?

1. Muted 1.7% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
2. Low free cash flow margin of 1% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Lovesac’s stock price of $20 implies a valuation ratio of 5.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why LOVE doesn’t pass our bar.

Manitowoc (MTW)

Consensus Price Target: $13 (29.2% implied return)

Contracted by the United States Navy during WWII, Manitowoc (NYSE:MTW) provides cranes and lifting equipment.

Why Do We Avoid MTW?

1. Demand cratered as it couldn’t win new orders over the past two years, leading to an average 15.3% decline in its backlog
2. Earnings per share fell by 17.6% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.7 percentage points

At $10.06 per share, Manitowoc trades at 20.6x forward P/E. Read our free research report to see why you should think twice about including MTW in your portfolio.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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).

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