3 of Wall Street's Favorite Stocks with Open Questions

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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here are three stocks where Wall Street’s estimates seem disconnected from reality and some better opportunities to consider.

Mondelez (MDLZ)

Consensus Price Target: $69.07 (21.1% implied return)

Founded as Nabisco in 1903, Mondelez (NASDAQ:MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.

Why Are We Hesitant About MDLZ?

1. Shrinking unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
2. Efficiency has decreased over the last year as its operating margin fell by 5.2 percentage points
3. Free cash flow margin shrank by 4.2 percentage points over the last year, suggesting the company is consuming more capital to stay competitive

Mondelez is trading at $57.01 per share, or 18.2x forward P/E. Dive into our free research report to see why there are better opportunities than MDLZ.

Hudson Technologies (HDSN)

Consensus Price Target: $9.63 (42.2% implied return)

Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.

Why Does HDSN Worry Us?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.9% annually over the last two years
2. Earnings per share have dipped by 33.8% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $6.77 per share, Hudson Technologies trades at 10.2x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including HDSN in your portfolio.

Commercial Vehicle Group (CVGI)

Consensus Price Target: $4 (148% implied return)

Formed from a partnership between two distinct companies, CVG (NASDAQ:CVGI) offers various components used in vehicles and systems used in warehouses.

Why Should You Sell CVGI?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Commercial Vehicle Group’s stock price of $1.61 implies a valuation ratio of 3.2x forward EV-to-EBITDA. To fully understand why you should be careful with CVGI, check out our full research report (it’s free for active Edge members).

Stocks We Like More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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