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. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
The ONE Group (STKS)
Consensus Price Target: $5.13 (106% implied return)
Doubling as a hospitality services provider for hotels and resorts, The One Group Hospitality (NASDAQ: STKS) is an upscale restaurant company that operates STK Steakhouse and Kona Grill.
Why Is STKS Not Exciting?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens
The ONE Group is trading at $2.49 per share, or 5.6x forward P/E. Dive into our free research report to see why there are better opportunities than STKS.
MGP Ingredients (MGPI)
Consensus Price Target: $39 (40% implied return)
Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ: MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry
Why Do We Steer Clear of MGPI?
- Sales tumbled by 6% annually over the last three years, showing consumer trends are working against its favor
- Forecasted revenue decline of 15.8% for the upcoming 12 months implies demand will fall even further
- Operating margin declined by 13.6 percentage points over the last year as its sales cratered
At $27.86 per share, MGP Ingredients trades at 10.6x forward P/E. To fully understand why you should be careful with MGPI, check out our full research report (it’s free).
UFP Technologies (UFPT)
Consensus Price Target: $329.50 (63.4% implied return)
With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ: UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.
Why Does UFPT Give Us Pause?
- Modest revenue base of $588.6 million gives it less fixed cost leverage and fewer distribution channels than larger companies
UFP Technologies’s stock price of $201.60 implies a valuation ratio of 20.2x forward P/E. If you’re considering UFPT for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
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).
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