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1 of Wall Street’s Favorite Stock Worth Your Attention and 2 We Avoid

ANF 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.

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 positive outlook is supported by strong fundamentals and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

Teleflex (TFX)

Consensus Price Target: $129.25 (13.5% implied return)

With a portfolio spanning from vascular access catheters to minimally invasive surgical tools, Teleflex (NYSE: TFX) designs, manufactures, and supplies single-use medical devices used in critical care and surgical procedures across hospitals worldwide.

Why Does TFX Give Us Pause?

  1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
  2. Free cash flow margin shrank by 12.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
  3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Teleflex is trading at $113.90 per share, or 7.6x forward P/E. Read our free research report to see why you should think twice about including TFX in your portfolio.

Albertsons (ACI)

Consensus Price Target: $22 (22.7% implied return)

With over 20 well-known grocery banners spanning 34 states, Albertsons (NYSE: ACI) operates food and drug retail stores across the US, offering groceries, pharmacy services, and own-brand products under banners like Safeway, Jewel-Osco, and Vons.

Why Are We Wary of ACI?

  1. Conservative approach to adding new stores shows management is focused on improving existing location performance
  2. Gross margin of 27.5% is below its competitors, leaving less money for marketing and promotions
  3. Poor expense management has led to an operating margin of 2% that is below the industry average

Albertsons’s stock price of $17.93 implies a valuation ratio of 8.2x forward P/E. Dive into our free research report to see why there are better opportunities than ACI.

One Stock to Buy:

Abercrombie and Fitch (ANF)

Consensus Price Target: $127.56 (32.5% implied return)

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

Why Should You Buy ANF?

  1. Comparable store sales rose by 11.9% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
  2. Unique assortment of products and pricing power lead to a best-in-class gross margin of 63.3%
  3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 191% exceeded its revenue gains over the last three years

At $96.29 per share, Abercrombie and Fitch trades at 9.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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