The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
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 consensus estimates seem disconnected from reality.
Two Stocks to Sell:
MillerKnoll (MLKN)
Consensus Price Target: $35 (42.9% implied return)
Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ: MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide.
Why Does MLKN Fall Short?
- 2.9% annual revenue growth over the last two years was slower than its business services peers
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 11% annually
- Low free cash flow margin of 2.2% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
MillerKnoll is trading at $24.49 per share, or 11.8x forward P/E. Check out our free in-depth research report to learn more about why MLKN doesn’t pass our bar.
QuidelOrtho (QDEL)
Consensus Price Target: $12 (-2.6% implied return)
Born from the 2022 merger of Quidel and Ortho Clinical Diagnostics, QuidelOrtho (NASDAQ: QDEL) develops and manufactures diagnostic testing solutions for healthcare providers, from rapid point-of-care tests to complex laboratory instruments and systems.
Why Do We Think QDEL Will Underperform?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
At $12.32 per share, QuidelOrtho trades at 18.1x forward P/E. To fully understand why you should be careful with QDEL, check out our full research report (it’s free).
One Stock to Buy:
Planet Labs (PL)
Consensus Price Target: $40.10 (65.5% implied return)
Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE: PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.
What Makes PL Stand Out?
- Average backlog growth of 143% over the past two years shows it has a steady sales pipeline that will drive future orders
- Additional sales over the last two years increased its profitability as the 48.9% annual growth in its earnings per share outpaced its revenue
- Free cash flow profile has moved into positive territory over the last five years, indicating the company has achieved financial self-sustainability
Planet Labs’s stock price of $24.23 implies a valuation ratio of 370.3x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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.
