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3 of Wall Street’s Favorite Stocks We Keep Off Our Radar

ENTG 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. That said, here are three stocks where Wall Street’s estimates seem disconnected from reality and some better opportunities to consider.

Entegris (ENTG)

Consensus Price Target: $142.73 (32.2% implied return)

With fabs representing the company’s largest customer type, Entegris (NASDAQ: ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Why Are We Wary of ENTG?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.8% annually over the last two years
  2. Anticipated sales growth of 7.1% for the next year implies demand will be shaky
  3. Low free cash flow margin of 11.1% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Entegris’s stock price of $107.96 implies a valuation ratio of 32.3x forward P/E. Read our free research report to see why you should think twice about including ENTG in your portfolio.

Energizer (ENR)

Consensus Price Target: $23.67 (39% implied return)

Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE: ENR) is one of the world's largest manufacturers of batteries.

Why Does ENR Fall Short?

  1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.4%
  3. 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Energizer is trading at $17.02 per share, or 4.8x forward P/E. If you’re considering ENR for your portfolio, see our FREE research report to learn more.

Centrus Energy (LEU)

Consensus Price Target: $279.58 (33.8% implied return)

Operating the only active U.S. facility licensed to produce high-assay low-enriched uranium (HALEU) for next-generation reactors, Centrus Energy (NYSE: LEU) supplies enriched uranium, the fissile component needed to produce fuel for nuclear power reactors.

Why Should You Sell LEU?

  1. Revenue base of $448.7 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
  2. Gross margin of 31.8% is below its competitors, leaving less money to invest in exploration and production
  3. Day-to-day expenses have swelled relative to revenue over the last five years as its EBITDA margin fell by 33.2 percentage points

At $209.00 per share, Centrus Energy trades at 60x forward P/E. Check out our free in-depth research report to learn more about why LEU doesn’t pass our bar.

Stocks We Like More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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