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.
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 likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
B&G Foods (BGS)
Consensus Price Target: $5.42 (28.7% implied return)
Started as a small grocery store in New York City, B&G Foods (NYSE:BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.
Why Should You Dump BGS?
- Annual revenue declines of 3.3% over the last three years indicate problems with its market positioning
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $4.21 per share, B&G Foods trades at 5.9x forward P/E. Dive into our free research report to see why there are better opportunities than BGS.
LifeStance Health Group (LFST)
Consensus Price Target: $8.44 (98.4% implied return)
With over 6,600 licensed mental health professionals treating more than 880,000 patients annually, LifeStance Health (NASDAQ:LFST) provides outpatient mental health services through a network of clinicians offering psychiatric evaluations, psychological testing, and therapy across 33 states.
Why Does LFST Fall Short?
- Smaller revenue base of $1.28 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Negative returns on capital show management lost money while trying to expand the business
LifeStance Health Group’s stock price of $4.25 implies a valuation ratio of 55.8x forward P/E. Check out our free in-depth research report to learn more about why LFST doesn’t pass our bar.
One Stock to Buy:
Remitly (RELY)
Consensus Price Target: $28.17 (63.7% implied return)
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Will RELY Outperform?
- Has the opportunity to boost monetization through new features and premium offerings as its active customers have grown by 37.3% annually over the last two years
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 74% outpaced its revenue gains
- Free cash flow margin grew by 35.6 percentage points over the last few years, giving the company more chips to play with
Remitly is trading at $17.21 per share, or 17.1x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out 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 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 Comfort Systems (+782% 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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