3 of Wall Street's Favorite Stocks Walking a Fine Line

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.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.

Teladoc (TDOC)

Consensus Price Target: $8.97 (30.1% implied return)

Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE:TDOC) is a telemedicine platform that facilitates remote doctor’s visits.

Why Do We Think Twice About TDOC?

1. Muted 6% annual revenue growth over the last three years shows its demand lagged behind its consumer internet peers
2. Preference for prioritizing user growth over monetization has led to 5.3% annual drops in its average revenue per user
3. Sales are projected to tank by 1.3% over the next 12 months as demand evaporates

At $6.90 per share, Teladoc trades at 4x forward EV/EBITDA. To fully understand why you should be careful with TDOC, check out our full research report (it’s free).

Winnebago (WGO)

Consensus Price Target: $48.92 (41.5% implied return)

Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE:WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.

Why Do We Think WGO Will Underperform?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 21.4% annually over the last two years
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 28.9% annually
3. Eroding returns on capital suggest its historical profit centers are aging

Winnebago’s stock price of $34.58 implies a valuation ratio of 7.7x forward P/E. If you’re considering WGO for your portfolio, see our FREE research report to learn more.

Stratasys (SSYS)

Consensus Price Target: $15.33 (46.4% implied return)

Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ:SSYS) offers 3D printers and related materials, software, and services to many industries.

Why Should You Sell SSYS?

1. Sales tumbled by 1.7% annually over the last five years, showing market trends are working against its favor during this cycle
2. Issuance of new shares over the last five years caused its earnings per share to fall by 13.6% annually, even worse than its revenue declines
3. Cash burn makes us question whether it can achieve sustainable long-term growth

Stratasys is trading at $10.47 per share, or 32.8x forward P/E. Dive into our free research report to see why there are better opportunities than SSYS.

Stocks We Like More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.