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1 of Wall Street’s Favorite Stock to Own for Decades and 2 We Find Risky

CLAR Cover Image

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.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, 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:

Clarus (CLAR)

Consensus Price Target: $4.15 (22.7% implied return)

Initially a financial services business, Clarus (NASDAQ:CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.

Why Do We Pass on CLAR?

  1. Products and services have few die-hard fans as sales have declined by 10.6% annually over the last two years
  2. Cash burn makes us question whether it can achieve sustainable long-term growth
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Clarus is trading at $3.38 per share, or 23.2x forward P/E. Read our free research report to see why you should think twice about including CLAR in your portfolio.

ManpowerGroup (MAN)

Consensus Price Target: $42 (29.5% implied return)

Founded during the post-World War II economic boom when businesses needed temporary workers, ManpowerGroup (NYSE:MAN) connects millions of people to employment opportunities through its global network of staffing, recruitment, and workforce management services.

Why Do We Avoid MAN?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Sales over the last five years were less profitable as its earnings per share fell by 18.4% annually while its revenue was flat
  3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

ManpowerGroup’s stock price of $32.44 implies a valuation ratio of 9.3x forward P/E. If you’re considering MAN for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

QuinStreet (QNST)

Consensus Price Target: $21.75 (49.6% implied return)

Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.

Why Should You Buy QNST?

  1. Annual revenue growth of 37.2% over the past two years was outstanding, reflecting market share gains this cycle
  2. Forecasted revenue growth of 8.7% for the next 12 months indicates its momentum over the last two years is sustainable
  3. Earnings per share have massively outperformed its peers over the last two years, increasing by 160% annually

At $14.54 per share, QuinStreet trades at 13.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 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-small-cap company Exlservice (+354% 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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