ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

3 of Wall Street’s Favorite Stocks Walking a Fine Line

ZBRA Cover Image

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.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.

Zebra (ZBRA)

Consensus Price Target: $372.33 (22.5% implied return)

Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

Why Do We Steer Clear of ZBRA?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.9% annually over the last two years
  2. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  3. Earnings per share have contracted by 3.1% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance

Zebra’s stock price of $304.05 implies a valuation ratio of 18.7x forward P/E. Read our free research report to see why you should think twice about including ZBRA in your portfolio.

Butterfield Bank (NTB)

Consensus Price Target: $50.50 (19.6% implied return)

Founded in 1784 as one of the oldest banks in the Western Hemisphere, Butterfield Bank (NYSE: NTB) provides banking, wealth management, and trust services to individuals and businesses in select offshore financial centers including Bermuda, Cayman Islands, and the Channel Islands.

Why Does NTB Give Us Pause?

  1. Annual net interest income growth of 1.4% over the last five years was below our standards for the banking sector
  2. Forecasted net interest income decline of 42.9% for the upcoming 12 months implies demand will fall off a cliff
  3. Weak unit economics are reflected in its net interest margin of 2.7%, one of the worst among bank companies

At $42.24 per share, Butterfield Bank trades at 1.5x forward P/B. If you’re considering NTB for your portfolio, see our FREE research report to learn more.

Independent Bank (INDB)

Consensus Price Target: $82.75 (21.7% implied return)

Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. (NASDAQ: INDB) operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.

Why Do We Think Twice About INDB?

  1. Sales trends were unexciting over the last two years as its 1.6% annual growth was below the typical banking company
  2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 6.9% annually
  3. Muted 4.6% annual tangible book value per share growth over the last two years shows its capital generation lagged behind its banking peers

Independent Bank is trading at $67.97 per share, or 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than INDB.

Stocks We Like More

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 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-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.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  233.22
+4.06 (1.77%)
AAPL  278.85
+1.30 (0.47%)
AMD  217.53
+3.29 (1.54%)
BAC  53.65
+0.66 (1.25%)
GOOG  320.12
-0.16 (-0.05%)
META  647.95
+14.34 (2.26%)
MSFT  492.01
+6.51 (1.34%)
NVDA  177.00
-3.26 (-1.81%)
ORCL  201.95
-3.01 (-1.47%)
TSLA  430.17
+3.59 (0.84%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.