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 where Wall Street’s positive outlook is supported by strong fundamentals and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Park-Ohio (PKOH)
Consensus Price Target: $37 (37% implied return)
Based in Cleveland, Park-Ohio (NASDAQ: PKOH) provides supply chain management services, capital equipment, and manufactured components.
Why Should You Dump PKOH?
- Sales tumbled by 1.8% annually over the last two years, showing market trends are working against its favor during this cycle
- Gross margin of 15.5% reflects its high production costs
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
Park-Ohio is trading at $27.01 per share, or 8.7x forward P/E. Dive into our free research report to see why there are better opportunities than PKOH.
Zebra (ZBRA)
Consensus Price Target: $339.55 (34.1% implied return)
Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.
Why Are We Cautious About ZBRA?
- Muted 3.9% annual revenue growth over the last five years shows its demand lagged behind its business services peers
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 4.3% annually
- Diminishing returns on capital suggest its earlier profit pools are drying up
Zebra’s stock price of $253.24 implies a valuation ratio of 14x forward P/E. If you’re considering ZBRA for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Moody's (MCO)
Consensus Price Target: $553.50 (24.5% implied return)
Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE: MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.
Why Are We Bullish on MCO?
- Solid 14.2% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 22.8% exceeded its revenue gains over the last two years
- ROE punches in at 63.1%, illustrating management’s expertise in identifying profitable investments
At $444.50 per share, Moody's trades at 26.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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.
