3 of Wall Street's Favorite Stocks in Hot Water

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.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.

EverQuote (EVER)

Consensus Price Target: $34.17 (41.2% implied return)

Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers

Why Does EVER Give Us Pause?

1. High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum

At $24.20 per share, EverQuote trades at 11.6x forward EV/EBITDA. If you’re considering EVER for your portfolio, see our FREE research report to learn more.

Torrid (CURV)

Consensus Price Target: $5.20 (86.4% implied return)

Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE:CURV) is a plus-size women’s apparel and accessories retailer.

Why Do We Steer Clear of CURV?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
2. Projected sales decline of 6.1% for the next 12 months points to a tough demand environment ahead
3. Earnings per share have contracted by 52.4% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

Torrid is trading at $2.79 per share, or 21.6x forward P/E. Dive into our free research report to see why there are better opportunities than CURV.

Myriad Genetics (MYGN)

Consensus Price Target: $7.62 (50.5% implied return)

Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ:MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health.

Why Do We Think MYGN Will Underperform?

1. 1.8% annual revenue growth over the last five years was slower than its healthcare peers
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 28.9% annually while its revenue grew
3. Negative returns on capital show management lost money while trying to expand the business, and its decreasing returns suggest its historical profit centers are aging

Myriad Genetics’s stock price of $5.06 implies a valuation ratio of 39.6x forward P/E. Read our free research report to see why you should think twice about including MYGN in your portfolio.

Stocks We Like More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our 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-small-cap company Comfort Systems (+782% 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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