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. Keeping that in mind, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.

FedEx (FDX)

Consensus Price Target: $277.78 (25.7% implied return)

Sporting one of the largest air cargo fleets in the world, FedEx (NYSE: FDX) is a global provider of parcel and cargo delivery services.

Why Do We Pass on FDX?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.6% annually over the last two years
2. Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 1.9% annually

FedEx’s stock price of $221 implies a valuation ratio of 10x forward P/E. Read our free research report to see why you should think twice about including FDX in your portfolio.

Myriad Genetics (MYGN)

Consensus Price Target: $9.89 (154% implied return)

Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ: MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health.

Why Should You Dump MYGN?

1. Sales trends were unexciting over the last five years as its 1.8% annual growth was below the typical healthcare company
2. Earnings per share fell by 29.7% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Negative returns on capital show that some of its growth strategies have backfired, and its decreasing returns suggest its historical profit centers are aging

At $3.89 per share, Myriad Genetics trades at 30.6x forward P/E. To fully understand why you should be careful with MYGN, check out our full research report (it’s free).

Tandem Diabetes (TNDM)

Consensus Price Target: $35.14 (54.5% implied return)

With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ: TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels.

Why Do We Think TNDM Will Underperform?

1. Disappointing pump shipments over the past two years imply it may need to invest in improvements to get back on track
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 47.1% annually while its revenue grew
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Tandem Diabetes is trading at $22.75 per share, or 39.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why TNDM doesn’t pass our bar.

Stocks That Overcame Trump’s 2018 Tariffs

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 176% over the last five years.

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.