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 enthusiasm may be misplaced and some other investments worth exploring instead.
Peloton (PTON)
Consensus Price Target: $8.80 (41.8% implied return)
Started as a Kickstarter campaign, Peloton (NASDAQ: PTON) is a fitness technology company known for its at-home exercise equipment and interactive online workout classes.
Why Is PTON Risky?
- Number of connected fitness subscribers has disappointed over the past two years, indicating weak demand for its offerings
- Forecasted revenue decline of 4.1% for the upcoming 12 months implies demand will fall even further
- Historical operating margin losses point to an inefficient cost structure
Peloton is trading at $6.21 per share, or 7.3x forward EV-to-EBITDA. To fully understand why you should be careful with PTON, check out our full research report (it’s free).
CooperCompanies (COO)
Consensus Price Target: $92.09 (29.1% implied return)
With a history dating back to 1958 and a portfolio spanning two distinct healthcare segments, Cooper Companies (NASDAQ:COO) develops and manufactures medical devices focused on vision care through contact lenses and women's health including fertility products and services.
Why Does COO Give Us Pause?
- Free cash flow margin dropped by 6.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $71.31 per share, CooperCompanies trades at 17x forward P/E. Check out our free in-depth research report to learn more about why COO doesn’t pass our bar.
Enovis (ENOV)
Consensus Price Target: $56.30 (117% implied return)
With a focus on helping patients regain or maintain their natural motion, Enovis (NYSE:ENOV) develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation.
Why Do We Avoid ENOV?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 9.1% annually over the last five years
- Negative returns on capital show that some of its growth strategies have backfired, and its shrinking returns suggest its past profit sources are losing steam
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Enovis’s stock price of $26 implies a valuation ratio of 8x forward P/E. Read our free research report to see why you should think twice about including ENOV in your portfolio.
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. 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-micro-cap company Kadant (+351% 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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