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.
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 positive outlook is supported by strong fundamentals and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
J&J Snack Foods (JJSF)
Consensus Price Target: $144.33 (34.5% implied return)
Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ: JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers.
Why Are We Cautious About JJSF?
- Modest revenue base of $1.6 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Estimated sales growth of 2.2% for the next 12 months implies demand will slow from its three-year trend
- Capital intensity has ramped up over the last year as its free cash flow margin decreased by 2.7 percentage points
At $107.31 per share, J&J Snack Foods trades at 20.6x forward P/E. Dive into our free research report to see why there are better opportunities than JJSF.
Hanesbrands (HBI)
Consensus Price Target: $6.83 (39.6% implied return)
A classic American staple founded in 1901, Hanesbrands (NYSE: HBI) is a clothing company known for its array of basic apparel including innerwear and activewear.
Why Should You Dump HBI?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
Hanesbrands is trading at $4.89 per share, or 9x forward P/E. Check out our free in-depth research report to learn more about why HBI doesn’t pass our bar.
One Stock to Watch:
Boston Scientific (BSX)
Consensus Price Target: $124.14 (20.5% implied return)
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Is BSX on Our Radar?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 15.6% over the past two years
- Projected revenue growth of 13.4% for the next 12 months suggests its momentum from the last two years will persist
- Additional sales over the last five years increased its profitability as the 18.4% annual growth in its earnings per share outpaced its revenue
Boston Scientific’s stock price of $103.04 implies a valuation ratio of 34x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum 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-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
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