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. That said, here is one stock where Wall Street’s excitement appears well-founded and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Global Industrial (GIC)
Consensus Price Target: $40 (18.5% implied return)
Formerly known as Systemax, Global Industrial (NYSE: GIC) distributes industrial and commercial products to businesses and institutions.
Why Are We Out on GIC?
- 4% annual revenue growth over the last two years was slower than its industrials peers
- Flat earnings per share over the last two years underperformed the sector average
- Waning returns on capital imply its previous profit engines are losing steam
Global Industrial’s stock price of $33.75 implies a valuation ratio of 16.6x forward P/E. To fully understand why you should be careful with GIC, check out our full research report (it’s free).
Park-Ohio (PKOH)
Consensus Price Target: $37 (31.2% implied return)
Based in Cleveland, Park-Ohio (NASDAQ: PKOH) provides supply chain management services, capital equipment, and manufactured components.
Why Do We Pass on PKOH?
- Annual sales declines of 1.8% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share decreased by more than its revenue over the last two years, partly because it diluted shareholders
- Cash burn makes us question whether it can achieve sustainable long-term growth
At $28.20 per share, Park-Ohio trades at 8.6x forward P/E. Check out our free in-depth research report to learn more about why PKOH doesn’t pass our bar.
One Stock to Buy:
Nicolet Bankshares (NIC)
Consensus Price Target: $174.20 (20.9% implied return)
Starting as Green Bay Financial Corporation in 2000 before rebranding in 2002, Nicolet Bankshares (NYSE: NIC) is a regional bank holding company that provides commercial, agricultural, and consumer banking services primarily in Wisconsin, Michigan, and Minnesota.
Why Should You Buy NIC?
- Market share has increased this cycle as its 21.9% annual net interest income growth over the last five years was exceptional
- Net interest margin grew by 65 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more chips to play with
- Impressive 10.2% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
Nicolet Bankshares is trading at $144.03 per share, or 1.3x forward P/B. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
