1 of Wall Street’s Favorite Stocks to Research Further and 2 We Avoid

Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.

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 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:

Under Armour (UAA)

Consensus Price Target: $6.40 (23.9% implied return)

Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE:UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.

Why Are We Bearish on UAA?

1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
2. Cash-burning history makes us doubt the long-term viability of its business model
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Under Armour is trading at $5.17 per share, or 67.4x forward P/E. If you’re considering UAA for your portfolio, see our FREE research report to learn more.

Array (ARRY)

Consensus Price Target: $9.11 (90.7% implied return)

Going public in October 2020, Array (NASDAQ:ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.

Why Do We Avoid ARRY?

1. Sales trends were unexciting over the last two years as its 3.7% annual growth was below the typical industrials company
2. Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 3.1% annually
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

At $4.78 per share, Array trades at 6.1x forward P/E. Dive into our free research report to see why there are better opportunities than ARRY.

One Stock to Watch:

EnerSys (ENS)

Consensus Price Target: $252.58 (29.3% implied return)

Supplying batteries that power equipment as big as mining rigs, EnerSys (NYSE:ENS) manufactures various kinds of batteries for a range of industries.

Why Are We Positive on ENS?

1. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
2. Share repurchases over the last two years enabled its annual earnings per share growth of 20% to outpace its revenue gains
3. Free cash flow margin grew by 23.8 percentage points over the last five years, giving the company more chips to play with

EnerSys’s stock price of $195.38 implies a valuation ratio of 14.8x forward P/E. Is now the time to initiate a position? See for yourself in our full 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.