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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Methode Electronics (MEI)
Consensus Price Target: $10.25 (40.2% implied return)
Founded in 1946, Methode Electronics (NYSE:MEI) is a global supplier of custom-engineered solutions for Original Equipment Manufacturers (OEMs).
Why Do We Steer Clear of MEI?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.8% annually over the last two years
- 11.6 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
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Methode Electronics’s stock price of $7.31 implies a valuation ratio of 3.1x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why MEI doesn’t pass our bar.
QuidelOrtho (QDEL)
Consensus Price Target: $37.67 (34.6% implied return)
Born from the 2022 merger of Quidel and Ortho Clinical Diagnostics, QuidelOrtho (NASDAQ:QDEL) develops and manufactures diagnostic testing solutions for healthcare providers, from rapid point-of-care tests to complex laboratory instruments and systems.
Why Should You Dump QDEL?
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 27.6 percentage points
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $27.98 per share, QuidelOrtho trades at 12.5x forward P/E. If you’re considering QDEL for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
agilon health (AGL)
Consensus Price Target: $1.01 (58% implied return)
Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE:AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.
Why Do We Like AGL?
- Impressive 37.2% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Customer trends over the past two years show it’s maintaining a steady flow of new contracts that can potentially increase in value over time
- Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability
agilon health is trading at $0.64 per share, or 0x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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-micro-cap company Tecnoglass (+1,754% 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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