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.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.

Rapid7 (RPD)

Consensus Price Target: $24.57 (19.9% implied return)

With its name inspired by the need for quick responses to cyber threats, Rapid7 (NASDAQ: RPD) provides cybersecurity software and services that help organizations detect vulnerabilities, monitor threats, and respond to security incidents.

Why Do We Avoid RPD?

1. ARR growth averaged a weak 4.2% over the last year, suggesting that competition is pulling some attention away from its software
2. Estimated sales growth of 1.8% for the next 12 months implies demand will slow from its two-year trend
3. Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage

Rapid7 is trading at $20.50 per share, or 1.5x forward price-to-sales. To fully understand why you should be careful with RPD, check out our full research report (it’s free).

Moderna (MRNA)

Consensus Price Target: $44.25 (75.2% implied return)

Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ: MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.

Why Is MRNA Risky?

1. Sales tumbled by 46.3% annually over the last two years, showing market trends are working against its favor during this cycle
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 242.8 percentage points
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $25.26 per share, Moderna trades at 5.2x forward price-to-sales. If you’re considering MRNA for your portfolio, see our FREE research report to learn more.

U.S. Physical Therapy (USPH)

Consensus Price Target: $107 (36.3% implied return)

With a nationwide footprint spanning 671 clinics across 42 states, U.S. Physical Therapy (NYSE: USPH) operates a network of outpatient physical therapy clinics and provides industrial injury prevention services to employers across the United States.

Why Are We Cautious About USPH?

1. Smaller revenue base of $729.6 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
2. Free cash flow margin shrank by 9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Eroding returns on capital suggest its historical profit centers are aging

U.S. Physical Therapy’s stock price of $78.48 implies a valuation ratio of 30.2x forward P/E. Check out our free in-depth research report to learn more about why USPH doesn’t pass our bar.

Stocks We Like More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.