3 of Wall Street's Favorite Stocks We Keep Off Our Radar

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.

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.

Designer Brands (DBI)

Consensus Price Target: $4.50 (3.7% implied return)

Founded in 1969 as a shoe importer and distributor, Designer Brands (NYSE:DBI) is an American discount retailer focused on footwear and accessories.

Why Do We Steer Clear of DBI?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Earnings per share have contracted by 26.9% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
3. High net-debt-to-EBITDA ratio of 12× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Designer Brands’s stock price of $4.34 implies a valuation ratio of 6.7x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than DBI.

Medifast (MED)

Consensus Price Target: $15 (36.7% implied return)

Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE:MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.

Why Do We Think MED Will Underperform?

1. Products aren't resonating with the market as its revenue declined by 36% annually over the last three years
2. Smaller revenue base of $429.7 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable

Medifast is trading at $10.97 per share, or 0.4x forward price-to-sales. Check out our free in-depth research report to learn more about why MED doesn’t pass our bar.

1-800-FLOWERS (FLWS)

Consensus Price Target: $6 (77.5% implied return)

Founded in 1976, 1-800-FLOWERS (NASDAQ:FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.

Why Should You Dump FLWS?

1. Sales were flat over the last five years, indicating it’s failed to expand its business
2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $3.38 per share, 1-800-FLOWERS trades at 4.3x forward EV-to-EBITDA. If you’re considering FLWS for your portfolio, see our FREE research report to learn more.

Stocks We Like More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out 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 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-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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