1 of Wall Street’s Favorite Stock to Target This Week and 2 We Find Risky

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 excitement appears well-founded and two where consensus estimates seem disconnected from reality.

Consensus Price Target: $13.25 (38.3% implied return)

Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike (NYSE:LUCK) operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.

Why Do We Pass on LUCK?

Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations

Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Lucky Strike’s stock price of $9.58 implies a valuation ratio of 32x forward P/E. If you’re considering LUCK for your portfolio, see our FREE research report to learn more.

Consensus Price Target: $12.25 (23.9% implied return)

With roots in serving Korean-American communities and now expanded to a multi-ethnic clientele across 12 states, Hope Bancorp (NASDAQ:HOPE) operates Bank of Hope, providing commercial and retail banking services with a focus on serving multi-ethnic communities across the United States.

Why Do We Think HOPE Will Underperform?

Net interest income stagnated over the last five years and signal the need for new growth strategies

Operating profits fell over the last four years as its sales dropped and it struggled to adjust its fixed costs

Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable

Hope Bancorp is trading at $9.89 per share, or 0.6x forward P/B. Read our free research report to see why you should think twice about including HOPE in your portfolio, it’s free.

Consensus Price Target: $52.50 (102% implied return)

Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ:GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don’t reach.