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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here is one stock where Wall Street’s excitement appears well-founded and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Energy Recovery (ERII)
Consensus Price Target: $12 (41.8% implied return)
Having saved far more than a trillion gallons of water, Energy Recovery (NASDAQ: ERII) provides energy recovery devices to the water treatment, oil and gas, and chemical processing sectors.
Why Is ERII Not Exciting?
- Sales trends were unexciting over the last five years as its 1.6% annual growth was below the typical industrials company
- Sales are projected to tank by 32.9% over the next 12 months as demand evaporates
- Flat earnings per share over the last five years underperformed the sector average
Energy Recovery is trading at $8.46 per share, or 86.3x forward P/E. To fully understand why you should be careful with ERII, check out our full research report (it’s free).
Graco (GGG)
Consensus Price Target: $92 (22.1% implied return)
Founded in 1926, Graco (NYSE: GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.
Why Are We Wary of GGG?
- Annual revenue growth of 2.1% over the last two years was below our standards for the industrials sector
- Earnings per share were flat over the last two years and fell short of the peer group average
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Graco’s stock price of $75.33 implies a valuation ratio of 23.9x forward P/E. Dive into our free research report to see why there are better opportunities than GGG.
One Stock to Buy:
NerdWallet (NRDS)
Consensus Price Target: $12.83 (60% implied return)
Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet (NASDAQ: NRDS) is a digital platform that provides financial guidance to help consumers and small businesses make smarter decisions about credit cards, loans, insurance, and other financial products.
Why Do We Love NRDS?
- Annual revenue growth of 28.2% over the last five years was superb and indicates its market share increased during this cycle
- Share repurchases over the last two years enabled its annual earnings per share growth of 186% to outpace its revenue gains
At $8.02 per share, NerdWallet trades at 1.4x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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 meeting 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 (+1,326% 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.
