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3 of Wall Street’s Favorite Stocks with Questionable Fundamentals

BAND Cover Image

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 may be overlooking some important risks and some alternatives with better fundamentals.

Bandwidth (BAND)

Consensus Price Target: $21.50 (38.4% implied return)

Powering communications for tech giants like Microsoft, Google, and Zoom, Bandwidth (NASDAQ: BAND) provides cloud-based communications software and APIs that enable businesses to embed voice, messaging, and emergency services into their applications and platforms.

Why Are We Wary of BAND?

  1. Sales trends were unexciting over the last two years as its 13.4% annual growth was below the typical software company
  2. Estimated sales growth of 4.9% for the next 12 months implies demand will slow from its two-year trend
  3. Gross margin of 38.6% is way below its competitors, leaving less money to invest in areas like marketing and R&D

Bandwidth’s stock price of $15.53 implies a valuation ratio of 0.6x forward price-to-sales. Read our free research report to see why you should think twice about including BAND in your portfolio.

Levi's (LEVI)

Consensus Price Target: $26.79 (28.3% implied return)

Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE: LEVI) is an apparel company renowned for its iconic denim products and classic American style.

Why Should You Dump LEVI?

  1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
  2. Projected sales growth of 3.1% for the next 12 months suggests sluggish demand
  3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $20.87 per share, Levi's trades at 15x forward P/E. To fully understand why you should be careful with LEVI, check out our full research report (it’s free for active Edge members).

U-Haul (UHAL)

Consensus Price Target: $96.24 (73.5% implied return)

Founded by a husband and wife duo, U-Haul (NYSE: UHAL) is a provider of rental trucks and storage facilities.

Why Do We Think UHAL Will Underperform?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
  2. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

U-Haul is trading at $55.48 per share, or 1.8x trailing 12-month price-to-sales. Dive into our free research report to see why there are better opportunities than UHAL.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 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 Comfort Systems (+782% 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.

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