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1 of Wall Street’s Favorite Stocks to Own for Decades 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. Keeping that in mind, here is one stock where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
Tapestry (TPR)
Consensus Price Target: $167.40 (47% implied return)
Originally founded as Coach, Tapestry (NYSE:TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.
Why Do We Steer Clear of TPR?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Projected 3.3 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Tapestry’s stock price of $113.88 implies a valuation ratio of 14.7x forward P/E. To fully understand why you should be careful with TPR, check out our full research report (it’s free).
Carlyle (CG)
Consensus Price Target: $58.12 (31.1% implied return)
Founded in 1987 with just $5 million in capital and named after the iconic New York hotel where the founders first met, The Carlyle Group (NASDAQ:CG) is a global investment firm that raises, manages, and deploys capital across private equity, credit, and investment solutions.
Why Do We Think CG Will Underperform?
- Sales trends were unexciting over the last two years as its 3.6% annual growth was below the typical financials company
- Earnings per share lagged its peers over the last two years as they only grew by 5.7% annually
Carlyle is trading at $44.33 per share, or 11.2x forward P/E. Dive into our free research report to see why there are better opportunities than CG.
One Stock to Buy:
Corning (GLW)
Consensus Price Target: $194.31 (15.7% implied return)
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE:GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Why Is GLW a Top Pick?
- Market share has increased this cycle as its 14.3% annual revenue growth over the last two years was exceptional
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 30.3% annually
- Free cash flow margin expanded by 5.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $167.99 per share, Corning trades at 44.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.