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.
GoDaddy (GDDY)
Consensus Price Target: $175.06 (32.1% implied return)
Known for its memorable Super Bowl commercials that put it on the map, GoDaddy (NYSE: GDDY) is a domain registrar and web services provider that helps entrepreneurs establish an online presence through domain registration, website building, hosting, and e-commerce tools.
Why Should You Sell GDDY?
- Average bookings growth of 7.9% over the last year was mediocre and suggests fewer customers signed long-term contracts
- Projected sales growth of 6.5% for the next 12 months suggests sluggish demand
- Steep infrastructure costs and weaker unit economics for a software company are reflected in its low gross margin of 63.6%
GoDaddy is trading at $132.50 per share, or 3.6x forward price-to-sales. Read our free research report to see why you should think twice about including GDDY in your portfolio.
Progyny (PGNY)
Consensus Price Target: $28.25 (53% implied return)
Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ: PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.
Why Is PGNY Not Exciting?
- Subscale operations are evident in its revenue base of $1.24 billion, meaning it has fewer distribution channels than its larger rivals
- Estimated sales growth of 4.8% for the next 12 months implies demand will slow from its two-year trend
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $18.46 per share, Progyny trades at 10.7x forward P/E. Dive into our free research report to see why there are better opportunities than PGNY.
Exponent (EXPO)
Consensus Price Target: $83 (17.2% implied return)
With a team of over 800 consultants holding advanced degrees in 90+ technical disciplines, Exponent (NASDAQ: EXPO) is a science and engineering consulting firm that investigates complex problems and provides expert analysis for clients across various industries.
Why Are We Hesitant About EXPO?
- Sales trends were unexciting over the last two years as its 3.5% annual growth was below the typical business services company
- Smaller revenue base of $531.1 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Eroding returns on capital suggest its historical profit centers are aging
Exponent’s stock price of $70.81 implies a valuation ratio of 32.3x forward P/E. Check out our free in-depth research report to learn more about why EXPO doesn’t pass our bar.
Stocks We Like More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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 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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