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. Keeping that in mind, here is one stock where Wall Street’s excitement appears well-founded and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Energizer (ENR)
Consensus Price Target: $24.29 (21.6% implied return)
Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE: ENR) is one of the world's largest manufacturers of batteries.
Why Do We Steer Clear of ENR?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Free cash flow margin shrank by 9.3 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Energizer’s stock price of $19.97 implies a valuation ratio of 5.8x forward P/E. Dive into our free research report to see why there are better opportunities than ENR.
Matson (MATX)
Consensus Price Target: $161 (30.1% implied return)
Founded by a Swedish orphan, Matson (NYSE: MATX) is a provider of ocean transportation and logistics services.
Why Are We Hesitant About MATX?
- 4.3% annual revenue growth over the last two years was slower than its industrials peers
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 8.3 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
Matson is trading at $123.71 per share, or 11.1x forward P/E. Read our free research report to see why you should think twice about including MATX in your portfolio.
One Stock to Watch:
Inspire Medical Systems (INSP)
Consensus Price Target: $140 (51.7% implied return)
Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE: INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.
Why Does INSP Catch Our Eye?
- Growing number of domestic medical centers reflects a desire to reach more customers in underserved markets
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 21.4% annually
- Free cash flow margin increased by 26 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $92.27 per share, Inspire Medical Systems trades at 57.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
