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 likely to meet or exceed Wall Street’s lofty expectations and one where analysts may be overlooking some important risks.
One stock to sell:
Knowles (KN)
Consensus price target: $44 (30.5% implied return)
With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE: KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications.
Why Are We Out on KN?
- Sales tumbled by 5.4% annually over the last five years, showing market trends are working against it during this cycle
- Modest revenue base of $666.1 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Earnings per share have contracted by 1.7% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
Knowles’s stock price of $33.71 implies a valuation ratio of 20.8x forward P/E. Dive into our free research report to see why there are better opportunities than KN.
Two stocks to watch:
ServiceNow (NOW)
Consensus price target: $154.69 (42.3% implied return)
Built on a single code base that processes more than 80 billion workflows and 6.5 trillion transactions annually, ServiceNow (NYSE: NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
Why Is NOW a Top Pick?
- Billings growth has averaged 22.2% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- NOW is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
ServiceNow is trading at $108.72 per share, or 6.2x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Core & Main (CNM)
Consensus price target: $54.54 (12.1% implied return)
Formerly a division of industrial distributor HD Supply, Core & Main (NYSE: CNM) is a provider of water, wastewater, and fire protection products and services.
Why Are We Fans of CNM?
- Annual revenue growth of 12.9% over the past five years was outstanding, reflecting market share gains this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin expanded by 8.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $48.64 per share, Core & Main trades at 14.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-quality stocks for all market conditions
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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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
