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华尔街日报3 of Wall Street’s Favorite Stocks That Concern Us
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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here are three stocks where Wall Street’s estimates seem disconnected from reality and some better opportunities to consider.
GoDaddy (GDDY)
Consensus Price Target: $175.20 (38.5% implied return)
Known for its memorable Super Bowl commercials that put it on the map, GoDaddy (NYSE:GDDY) is a domain registrar and web services provider that helps entrepreneurs establish an online presence through domain registration, website building, hosting, and e-commerce tools.
Why Do We Think GDDY Will Underperform?
- Average bookings growth of 7.8% over the last year was mediocre and suggests fewer customers signed long-term contracts
- Estimated sales growth of 6.5% for the next 12 months is soft and implies weaker demand
- High servicing costs result in a relatively inferior gross margin of 63.6% that must be offset through increased usage
GoDaddy’s stock price of $126.51 implies a valuation ratio of 3.4x forward price-to-sales. If you’re considering GDDY for your portfolio, see our FREE research report to learn more.
Varonis Systems (VRNS)
Consensus Price Target: $51.84 (55.5% implied return)
Beginning with protecting Windows file shares in 2005 and evolving into a comprehensive security platform, Varonis Systems (NASDAQ:VRNS) provides data security software that helps organizations protect sensitive information, detect threats, and comply with privacy regulations.
Why Is VRNS Not Exciting?
- Annual revenue growth of 11.7% over the last two years was below our standards for the software sector
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 2.7 percentage points
- Projected 1.9 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
At $33.34 per share, Varonis Systems trades at 5.6x forward price-to-sales. Check out our free in-depth research report to learn more about why VRNS doesn’t pass our bar.
Plug Power (PLUG)
Consensus Price Target: $2.79 (43.4% implied return)
Powering forklifts for Walmart’s distribution centers, Plug Power (NASDAQ:PLUG) provides hydrogen fuel cells used to power electric motors.
Why Do We Think Twice About PLUG?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 12.8% annually over the last two years
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Plug Power is trading at $1.94 per share, or 2.9x forward price-to-sales. To fully understand why you should be careful with PLUG, check out our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.