3 of Wall Street’s Favorite Stocks We Find Risky
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
Fiverr (FVRR)
Consensus Price Target: $10.75 (25.7% implied return)
Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services.
Why Does FVRR Give Us Pause?
- Struggled with new customer acquisition as its active buyers averaged 14% declines
- Sales are projected to tank by 23% over the next 12 months as demand evaporates
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
At $8.55 per share, Fiverr trades at 1.2x forward price-to-gross profit. If you’re considering FVRR for your portfolio, see our FREE research report to learn more.
Bath and Body Works (BBWI)
Consensus Price Target: $24.06 (40.9% implied return)
Spun off from L Brands in 2020, Bath & Body Works (NYSE:BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.
Why Is BBWI Not Exciting?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Projected sales for the next 12 months are flat and suggest demand will be subdued
- Earnings growth over the last three years fell short of the peer group average as its EPS only increased by 3.8% annually
Bath and Body Works is trading at $17.08 per share, or 6.7x forward P/E. To fully understand why you should be careful with BBWI, check out our full research report (it’s free).
Alamo (ALG)
Consensus Price Target: $204.80 (24.2% implied return)
Expanding its markets through acquisitions since its founding, Alamo (NYSE:ALG) designs, manufactures, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use.
Why Are We Hesitant About ALG?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Estimated sales growth of 4.2% for the next 12 months is soft and implies weaker demand
- Earnings per share have dipped by 5.6% annually over the past two years, which is concerning because stock prices follow EPS over the long term
Alamo’s stock price of $164.83 implies a valuation ratio of 14.9x forward P/E. Check out our free in-depth research report to learn more about why ALG doesn’t pass our bar.
Stocks We Like More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.