3 of Wall Street's Favorite Stocks in Hot Water

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. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.

Mister Car Wash (MCW)

Consensus Price Target: $9.38 (42% implied return)

Formerly known as Hotshine Holdings, Mister Car Wash (NYSE:MCW) offers car washes across the United States through its conveyorized service.

Why Do We Think MCW Will Underperform?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $6.60 per share, Mister Car Wash trades at 14.3x forward P/E. If you’re considering MCW for your portfolio, see our FREE research report to learn more.

Plug Power (PLUG)

Consensus Price Target: $1.85 (43.1% implied return)

Powering forklifts for Walmart’s distribution centers, Plug Power (NASDAQ:PLUG) provides hydrogen fuel cells used to power electric motors.

Why Is PLUG Risky?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 8.7% annually over the last two years
2. 531.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Plug Power’s stock price of $1.29 implies a valuation ratio of 1.6x forward price-to-sales. To fully understand why you should be careful with PLUG, check out our full research report (it’s free).

Enviri (NVRI)

Consensus Price Target: $14.33 (68.6% implied return)

Cooling America’s first indoor ice rink in the 19th century, Enviri (NYSE:NVRI) offers steel and waste handling services.

Why Do We Steer Clear of NVRI?

1. Annual revenue growth of 7.1% over the last two years was below our standards for the industrials sector
2. Negative free cash flow raises questions about the return timeline for its investments
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Enviri is trading at $8.50 per share, or 2.7x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including NVRI 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 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-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.