Financial News

3 of Wall Street’s Favorite Stocks Walking a Fine Line

BARK Cover Image

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. Keeping that in mind, here are three stocks where Wall Street’s estimates seem disconnected from reality and some better opportunities to consider.

Bark (BARK)

Consensus Price Target: $2.33 (202% implied return)

Making a name for itself with the BarkBox, Bark (NYSE: BARK) specializes in subscription-based, personalized pet products.

Why Should You Dump BARK?

  1. Sales tumbled by 5.3% annually over the last two years, showing consumer trends are working against its favor
  2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $0.77 per share, Bark trades at 48x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than BARK.

Matson (MATX)

Consensus Price Target: $135 (51% implied return)

Founded by a Swedish orphan, Matson (NYSE: MATX) is a provider of ocean transportation and logistics services.

Why Are We Wary of MATX?

  1. Sales trends were unexciting over the last two years as its 1% annual growth was below the typical industrials company
  2. Sales are projected to tank by 8.6% over the next 12 months as demand evaporates
  3. Eroding returns on capital suggest its historical profit centers are aging

Matson is trading at $89.39 per share, or 8.9x forward P/E. Read our free research report to see why you should think twice about including MATX in your portfolio.

Fifth Third Bancorp (FITB)

Consensus Price Target: $50.45 (20.5% implied return)

Named after the merger of Third National Bank and Fifth National Bank in 1908, Fifth Third Bancorp (NASDAQ: FITB) is a financial services company that provides banking, lending, wealth management, and investment services to individuals and businesses across the Midwest and Southeast.

Why Do We Think Twice About FITB?

  1. Annual net interest income growth of 3.8% over the last five years was below our standards for the banking sector
  2. Inferior net interest margin of 3% means it must compensate for lower profitability through increased loan originations
  3. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 1.5% annually over the last five years

Fifth Third Bancorp’s stock price of $41.87 implies a valuation ratio of 1.4x forward P/B. If you’re considering FITB for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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