1 of Wall Street's Favorite Stock to Consider Right Now and 2 to Ignore

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 its enthusiasm might be excessive.

Two Stocks to Sell:

Energizer (ENR)

Consensus Price Target: $37.89 (29.2% implied return)

Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE:ENR) is one of the world's largest manufacturers of batteries.

Why Are We Out on ENR?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Projected sales growth of 1.3% for the next 12 months suggests sluggish demand
3. 4 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position

At $26.75 per share, Energizer trades at 7.5x forward price-to-earnings. Check out our free in-depth research report to learn more about why ENR doesn’t pass our bar.

Vontier (VNT)

Consensus Price Target: $43.78 (38.8% implied return)

A spin-off of a spin-off, Vontier (NYSE:VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors.

Why Do We Pass on VNT?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. 12.7 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
3. Waning returns on capital imply its previous profit engines are losing steam

Vontier’s stock price of $30.04 implies a valuation ratio of 9.6x forward price-to-earnings. Read our free research report to see why you should think twice about including VNT in your portfolio.

One Stock to Watch:

IonQ (IONQ)

Consensus Price Target: $47.20 (61.5% implied return)

Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE:IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.

Why Are We Fans of IONQ?

1. Impressive 96.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Exciting sales outlook for the upcoming 12 months calls for 98.5% growth, an acceleration from its two-year trend
3. Adjusted operating margin expanded significantly over the last four years as it scaled and became more efficient

IonQ is trading at $25.76 per share, or 65.5x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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.