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.
BeautyHealth (SKIN)
Consensus Price Target: $2.25 (46.1% implied return)
Operating in the emerging beauty health category, the appropriately named BeautyHealth (NASDAQ: SKIN) is a skincare company best known for its Hydrafacial product that cleanses and hydrates skin.
Why Do We Think SKIN Will Underperform?
- Products aren't resonating with the market as its revenue declined by 1.6% annually over the last three years
- Subscale operations are evident in its revenue base of $310.1 million, meaning it has fewer distribution channels than its larger rivals
- Persistent operating margin losses suggest the business manages its expenses poorly
At $1.54 per share, BeautyHealth trades at 7.5x forward EV-to-EBITDA. To fully understand why you should be careful with SKIN, check out our full research report (it’s free for active Edge members).
Amneal (AMRX)
Consensus Price Target: $12.50 (30.8% implied return)
Founded in 2002 and growing into one of America's largest generic drug producers, Amneal Pharmaceuticals (NASDAQ: AMRX) develops, manufactures, and distributes generic medicines, specialty branded drugs, biosimilars, and injectable products for the U.S. healthcare market.
Why Does AMRX Fall Short?
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Amneal is trading at $9.56 per share, or 14x forward P/E. Check out our free in-depth research report to learn more about why AMRX doesn’t pass our bar.
Ladder Capital (LADR)
Consensus Price Target: $12.60 (18.5% implied return)
Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE: LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.
Why Do We Pass on LADR?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 13.2% annually over the last two years
- Projected net interest income is flat for the next 12 months, implying demand will slow from its five-year trend
- Flat tangible book value per share over the last five years suggest it must find different ways to enhance shareholder value during this cycle
Ladder Capital’s stock price of $10.63 implies a valuation ratio of 0.9x forward P/B. Read our free research report to see why you should think twice about including LADR in your portfolio.
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 9 Market-Beating Stocks. 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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