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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, 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:
Mohawk Industries (MHK)
Consensus Price Target: $137.75 (22.5% implied return)
Established in 1878, Mohawk Industries (NYSE: MHK) is a leading producer of floor-covering products for both residential and commercial applications.
Why Should You Sell MHK?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Forecasted free cash flow margin suggests the company will fail to improve its cash conversion over the next year
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Mohawk Industries is trading at $112.44 per share, or 11.4x forward P/E. Dive into our free research report to see why there are better opportunities than MHK.
Blink Charging (BLNK)
Consensus Price Target: $2.40 (201% implied return)
One of the first EV charging companies to go public, Blink Charging (NASDAQ: BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.
Why Are We Wary of BLNK?
- Annual sales declines of 5.9% for the past two years show its products and services struggled to connect with the market during this cycle
- Negative free cash flow raises questions about the return timeline for its investments
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $0.80 per share, Blink Charging trades at 0.8x forward price-to-sales. To fully understand why you should be careful with BLNK, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Arlo Technologies (ARLO)
Consensus Price Target: $23.20 (65.3% implied return)
Originally spun off from networking equipment maker Netgear in 2018, Arlo Technologies (NYSE: ARLO) provides cloud-based smart security devices and subscription services that help consumers and businesses monitor and protect their homes, properties, and loved ones.
Why Does ARLO Stand Out?
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Additional sales over the last two years increased its profitability as the 120% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 16.5 percentage points over the last five years, giving the company more chips to play with
Arlo Technologies’s stock price of $14.03 implies a valuation ratio of 19.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. 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-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
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