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 two stocks where Wall Street’s excitement appears well-founded and one where its enthusiasm might be excessive.
One Stock to Sell:
Hyster-Yale Materials Handling (HY)
Consensus Price Target: $56 (36.1% implied return)
Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE: HY) designs, manufactures, and sells materials handling equipment to various sectors.
Why Do We Think Twice About HY?
- Annual revenue growth of 5.1% over the last five years was below our standards for the industrials sector
- Estimated sales decline of 5.1% for the next 12 months implies a challenging demand environment
- Poor free cash flow margin of 0.5% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Hyster-Yale Materials Handling’s stock price of $41.14 implies a valuation ratio of 4.6x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including HY in your portfolio.
Two Stocks to Watch:
Bill.com (BILL)
Consensus Price Target: $62.18 (41.9% implied return)
Started by René Lacerte in 2006 after selling his previous payroll and accounting software company PayCycle to Intuit, Bill.com (NYSE: BILL) is a software as a service platform that aims to make payments and billing processes easier for small and medium-sized businesses.
Why Could BILL Be a Winner?
- Billings growth has averaged 15.3% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Software is difficult to replicate at scale and results in a top-tier gross margin of 84.5%
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Bill.com is trading at $43.81 per share, or 2.8x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Griffon (GFF)
Consensus Price Target: $96.71 (38.1% implied return)
Initially in the defense industry, Griffon (NYSE: GFF) is a now diversified company specializing in home improvement, professional equipment, and building products.
Why Are We Positive On GFF?
- Operating margin improvement of 7.8 percentage points over the last five years demonstrates its ability to scale efficiently
- Additional sales over the last five years increased its profitability as the 32.6% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 10 percentage points over the last five years, giving the company more chips to play with
At $70.01 per share, Griffon trades at 11.7x forward P/E. Is now a good time to buy? Find out in our full 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 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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.
