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 likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Carriage Services (CSV)
Consensus Price Target: $60 (38.9% implied return)
Established in 1991, Carriage Services (NYSE: CSV) is a provider of funeral and cemetery services in the United States.
Why Do We Think CSV Will Underperform?
- Lackluster 3.6% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Stagnant returns on capital show management has failed to improve the company’s business quality
At $43.19 per share, Carriage Services trades at 12.3x forward P/E. If you’re considering CSV for your portfolio, see our FREE research report to learn more.
Kyndryl (KD)
Consensus Price Target: $14.70 (32.7% implied return)
Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers.
Why Are We Hesitant About KD?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.8% annually over the last five years
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Push for growth has led to negative returns on capital, signaling value destruction
Kyndryl is trading at $11.08 per share, or 6x forward P/E. Check out our free in-depth research report to learn more about why KD doesn’t pass our bar.
One Stock to Watch:
Arlo Technologies (ARLO)
Consensus Price Target: $21.75 (68.6% 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 Are We Positive On ARLO?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 8.4% annual sales growth over the last five years
- Additional sales over the last two years increased its profitability as the 54% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin jumped by 15.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Arlo Technologies’s stock price of $12.90 implies a valuation ratio of 17x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
