1 of Wall Street's Favorite Stock Worth Your Attention and 2 We Ignore

The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.

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 positive outlook is supported by strong fundamentals and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

La-Z-Boy (LZB)

Consensus Price Target: $41 (25.3% implied return)

The prized possession of every mancave, La-Z-Boy (NYSE:LZB) is a furniture company specializing in recliners, sofas, and seats.

Why Do We Avoid LZB?

1. Sales tumbled by 2.8% annually over the last two years, showing consumer trends are working against its favor
2. Projected sales growth of 1.9% for the next 12 months suggests sluggish demand
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

La-Z-Boy’s stock price of $32.72 implies a valuation ratio of 12.7x forward P/E. If you’re considering LZB for your portfolio, see our FREE research report to learn more.

Robert Half (RHI)

Consensus Price Target: $35.33 (20.6% implied return)

With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE:RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.

Why Is RHI Risky?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.4% annually over the last two years
2. Sales over the last five years were less profitable as its earnings per share fell by 11.6% annually while its revenue was flat
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Robert Half is trading at $29.29 per share, or 19.8x forward P/E. Read our free research report to see why you should think twice about including RHI in your portfolio.

One Stock to Buy:

Hamilton Lane (HLNE)

Consensus Price Target: $157.17 (31% implied return)

With over $100 billion in assets under management and supervision, Hamilton Lane (NASDAQ:HLNE) is an investment management firm that specializes in private markets, offering advisory services and fund solutions to institutional and private wealth investors.

Why Is HLNE a Good Business?

1. Annual revenue growth of 21.1% over the last five years was superb and indicates its market share increased during this cycle
2. Share buybacks catapulted its annual earnings per share growth to 33.8%, which outperformed its revenue gains over the last two years
3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

At $119.96 per share, Hamilton Lane trades at 25.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

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 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).

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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.