Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
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’s estimates seem disconnected from reality and some better opportunities to consider.
Boston Beer (SAM)
Consensus Price Target: $243.86 (21.9% implied return)
Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE: SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Why Do We Think Twice About SAM?
- 1.6% annual revenue growth over the last three years was slower than its consumer staples peers
- Subscale operations are evident in its revenue base of $2.05 billion, meaning it has fewer distribution channels than its larger rivals
- Forecasted revenue decline of 4.4% for the upcoming 12 months implies demand will fall off a cliff
Boston Beer’s stock price of $200.03 implies a valuation ratio of 23.1x forward P/E. If you’re considering SAM for your portfolio, see our FREE research report to learn more.
Novanta (NOVT)
Consensus Price Target: $154 (43.2% implied return)
Originally a pioneer in the laser scanning industry during the late 1960s, Novanta (NASDAQ: NOVT) offers medicine and manufacturing technology to the medical, life sciences, and manufacturing industries.
Why Are We Wary of NOVT?
- 4% annual revenue growth over the last two years was slower than its industrials peers
- Flat earnings per share over the last two years lagged its peers
- 3.7 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
At $107.55 per share, Novanta trades at 60.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than NOVT.
Integra LifeSciences (IART)
Consensus Price Target: $15.50 (28.8% implied return)
Founded in 1989 as a pioneer in regenerative medicine technology, Integra LifeSciences (NASDAQ: IART) develops and manufactures medical technologies for neurosurgery, wound care, and surgical reconstruction, including regenerative tissue products and surgical instruments.
Why Do We Avoid IART?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- 19.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Integra LifeSciences is trading at $12.03 per share, or 5x forward P/E. To fully understand why you should be careful with IART, check out our full research report (it’s free for active Edge members).
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 Strong Momentum 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-micro-cap company Tecnoglass (+1,754% 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.
