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. 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:
Horace Mann Educators (HMN)
Consensus Price Target: $56.50 (24.1% implied return)
Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE: HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.
Why Is HMN Risky?
- 6.4% annualized net premiums earned growth over the last five years lagged behind its insurance peers
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 3.3% annually over the last five years
- Low return on equity reflects management’s struggle to allocate funds effectively
Horace Mann Educators’s stock price of $45.52 implies a valuation ratio of 1.2x forward P/B. Check out our free in-depth research report to learn more about why HMN doesn’t pass our bar.
Baker Hughes (BKR)
Consensus Price Target: $71.92 (28.4% implied return)
Tracing lineage to a 1907 cable tool drill bit patent, Baker Hughes (NASDAQ: BKR) provides equipment and services for oil and gas drilling, production, and transport.
Why Does BKR Worry Us?
- The company has faced growth challenges as its 6.3% annual revenue increases over the last five years fell short of other energy upstream and integrated energy companies
- Costly operations and weak unit economics result in an inferior gross margin of 22.3% that must be offset through higher production volumes
At $56 per share, Baker Hughes trades at 21.3x forward P/E. If you’re considering BKR for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Redwire (RDW)
Consensus Price Target: $14.69 (35.6% implied return)
Based in Jacksonville, Florida, Redwire (NYSE: RDW) is a provider of systems and components used in space infrastructure.
Why Could RDW Be a Winner?
- Annual revenue growth of 20.8% over the past two years was outstanding, reflecting market share gains this cycle
- Expected revenue growth of 20.6% for the next year suggests its market share will rise
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Redwire is trading at $10.83 per share, or 4.8x forward price-to-sales. Is now the time to initiate a position? 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.
