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.
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 excitement appears well-founded and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Fresh Del Monte Produce (FDP)
Consensus Price Target: $46 (30.1% implied return)
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Why Should You Dump FDP?
- Sales stagnated over the last three years and signal the need for new growth strategies
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 8.3%
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Fresh Del Monte Produce’s stock price of $35.37 implies a valuation ratio of 15.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why FDP doesn’t pass our bar.
Hilton Grand Vacations (HGV)
Consensus Price Target: $53.44 (22.2% implied return)
Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE:HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.
Why Does HGV Worry Us?
- Annual revenue growth of 11.2% over the last two years was below our standards for the consumer discretionary sector
- Underwhelming 3.6% return on capital reflects management’s difficulties in finding profitable growth opportunities
- High net-debt-to-EBITDA ratio of 15× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Hilton Grand Vacations is trading at $43.73 per share, or 11.8x forward P/E. If you’re considering HGV for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
SentinelOne (S)
Consensus Price Target: $23.45 (31.2% implied return)
Built on the principle of "fighting machine with machine," SentinelOne (NYSE:S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems.
Why Are We Fans of S?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Projected revenue growth of 21.3% for the next 12 months suggests its momentum from the last two years will persist
- Gross margin of 75% provides the financial cushion needed to invest in marketing and develop new products
At $17.88 per share, SentinelOne trades at 5.4x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% 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
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