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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Luxfer (LXFR)
Consensus Price Target: $17 (30.2% implied return)
With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE: LXFR) offers specialized materials, components, and gas containment devices to various industries.
Why Should You Dump LXFR?
- Annual sales declines of 2.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Projected sales decline of 6.5% over the next 12 months indicates demand will continue deteriorating
- Earnings per share lagged its peers over the last five years as they only grew by 2.3% annually
Luxfer’s stock price of $13.06 implies a valuation ratio of 11.9x forward P/E. Dive into our free research report to see why there are better opportunities than LXFR.
Repligen (RGEN)
Consensus Price Target: $182.12 (38% implied return)
With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ: RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.
Why Do We Pass on RGEN?
- Modest revenue base of $738.3 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Efficiency has decreased over the last five years as its adjusted operating margin fell by 18.3 percentage points
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $131.96 per share, Repligen trades at 66.7x forward P/E. Read our free research report to see why you should think twice about including RGEN in your portfolio.
One Stock to Buy:
Pure Storage (PSTG)
Consensus Price Target: $91.21 (40.3% implied return)
Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE: PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.
Why Will PSTG Beat the Market?
- Ability to secure long-term commitments with customers is evident in its 20.1% average ARR growth over the past two years
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 61.7% annually, topping its revenue gains
- PSTG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business
Pure Storage is trading at $65.02 per share, or 27.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
