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1 of Wall Street’s Favorite Stocks with Impressive Fundamentals and 2 Facing Challenges
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. That said, here is one stock where Wall Street’s excitement appears well-founded and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Caleres (CAL)
Consensus Price Target: $17 (40.7% implied return)
The owner of Dr. Scholl's, Caleres (NYSE:CAL) is a footwear company offering a range of styles.
Why Do We Pass on CAL?
- 2.4% annual revenue growth over the last five years was slower than its consumer discretionary peers
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital on unfavorable terms if market conditions deteriorate
At $12.08 per share, Caleres trades at 6.4x forward P/E. Dive into our free research report to see why there are better opportunities than CAL.
Fluence Energy (FLNC)
Consensus Price Target: $10 (35.3% implied return)
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ:FLNC) helps store renewable energy sources with battery systems.
Why Are We Wary of FLNC?
- Historically negative EPS raises concerns for risk-averse investors and makes its earnings potential harder to gauge
- Cash-burning history makes us doubt the long-term viability of its business model
- Negative earnings profile makes it challenging to secure favorable financing terms from lenders
Fluence Energy is trading at $7.39 per share, or 0.3x forward price-to-sales. Check out our free in-depth research report to learn more about why FLNC doesn’t pass our bar.
One Stock to Buy:
Tutor Perini (TPC)
Consensus Price Target: $116.25 (39.5% implied return)
Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE:TPC) is a civil and building construction company offering diversified general contracting and design-build services.
What Makes TPC Stand Out?
- Annual revenue growth of 18.2% over the past two years was outstanding, reflecting market share gains this cycle
- Free cash flow margin increased by 7.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Historical investments are beginning to pay off as its returns on capital are growing
Tutor Perini’s stock price of $83.32 implies a valuation ratio of 16x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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.