
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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
The Marzetti Company (MZTI)
Consensus Price Target: $146.60 (41.6% implied return)
Known for its frozen garlic bread and Parkerhouse rolls, The Marzetti Company (NASDAQ: MZTI) sells bread, dressing, and dips to the retail and food service channels.
Why Does MZTI Worry Us?
- 1.6% annual revenue growth over the last three years was slower than its consumer staples peers
- Modest revenue base of $1.91 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Gross margin of 23.9% is an output of its commoditized products
The Marzetti Company is trading at $103.55 per share, or 15.7x forward P/E. Read our free research report to see why you should think twice about including MZTI in your portfolio.
Post (POST)
Consensus Price Target: $105.17 (28.6% implied return)
Founded in 1895, Post (NYSE: POST) is a packaged food company known for its namesake breakfast cereal and healthier-for-you snacks.
Why Do We Avoid POST?
- Estimated sales decline of 5.9% for the next 12 months implies a challenging demand environment
- Gross margin of 29% is an output of its commoditized products
- ROIC of 5.8% reflects management’s challenges in identifying attractive investment opportunities
At $81.75 per share, Post trades at 12x forward P/E. To fully understand why you should be careful with POST, check out our full research report (it’s free).
One Stock to Watch:
Lennox (LII)
Consensus Price Target: $505.38 (31.2% implied return)
Based in Texas and founded over a century ago, Lennox (NYSE: LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.
Why Does LII Stand Out?
- Healthy operating margin of 17.7% shows it’s a well-run company with efficient processes, and its rise over the last five years was fueled by some leverage on its fixed costs
- Free cash flow margin increased by 8.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- ROIC punches in at 37.3%, illustrating management’s expertise in identifying profitable investments
Lennox’s stock price of $385.34 implies a valuation ratio of 15.7x 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 (+1,460% 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.