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 likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
USANA (USNA)
Consensus Price Target: $39 (101% implied return)
Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE:USNA) manufactures and sells nutritional, personal care, and skincare products.
Why Do We Think Twice About USNA?
- Sales tumbled by 4.2% annually over the last three years, showing consumer trends are working against its favor
- Sales are projected to tank by 1.4% over the next 12 months as its demand continues evaporating
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
USANA’s stock price of $19.40 implies a valuation ratio of 10.5x forward P/E. Read our free research report to see why you should think twice about including USNA in your portfolio.
Douglas Dynamics (PLOW)
Consensus Price Target: $38.75 (20.7% implied return)
Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE:PLOW) offers snow and ice equipment for the roads and sidewalks.
Why Does PLOW Give Us Pause?
- Annual revenue growth of 1.8% over the last two years was below our standards for the industrials sector
- 2.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Eroding returns on capital suggest its historical profit centers are aging
Douglas Dynamics is trading at $32.11 per share, or 13.5x forward P/E. Dive into our free research report to see why there are better opportunities than PLOW.
One Stock to Watch:
Distribution Solutions (DSGR)
Consensus Price Target: $38.50 (40.5% implied return)
Founded in 1952, Distribution Solutions (NASDAQ:DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.
Why Are We Fans of DSGR?
- Annual revenue growth of 15.1% over the last two years was superb and indicates its market share increased during this cycle
- Healthy unit economics are reflected in its 33.6% gross margin and give it more money to invest in marketing and R&D
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 34.8% annually
At $27.40 per share, Distribution Solutions trades at 17.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).
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-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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