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.
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 likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Tapestry (TPR)
Consensus Price Target: $165.05 (27% implied return)
Originally founded as Coach, Tapestry (NYSE: TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.
Why Do We Pass on TPR?
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Operating margin of 14.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Tapestry is trading at $129.99 per share, or 17.5x forward P/E. Read our free research report to see why you should think twice about including TPR in your portfolio.
HNI (HNI)
Consensus Price Target: $69 (118% implied return)
With roots dating back to 1944 and a significant acquisition of Kimball International in 2023, HNI (NYSE: HNI) manufactures and sells office furniture systems, seating, and storage solutions, as well as residential fireplaces and heating products.
Why Does HNI Give Us Pause?
- Performance over the past two years shows its incremental sales were less profitable, as its 9.3% annual earnings per share growth trailed its revenue gains
- Poor free cash flow margin of 3.6% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
HNI’s stock price of $31.58 implies a valuation ratio of 0.6x trailing 12-month price-to-sales. If you’re considering HNI for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Axon (AXON)
Consensus Price Target: $662.04 (70.5% implied return)
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Should You Buy AXON?
- Offerings are pivotal for their customers' operations as its ARR has averaged 37.6% growth over the past two years
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 26.6% annually
At $388.28 per share, Axon trades at 45.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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.
Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth Stocks for Free HERE.
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.
