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 enthusiasm may be misplaced and some other investments worth exploring instead.
EverQuote (EVER)
Consensus Price Target: $34.17 (55.9% implied return)
Aiming to simplify a once complicated process, EverQuote (NASDAQ: EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Why Does EVER Worry Us?
- High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum
At $21.91 per share, EverQuote trades at 10.7x forward EV/EBITDA. Check out our free in-depth research report to learn more about why EVER doesn’t pass our bar.
Great Lakes Dredge & Dock (GLDD)
Consensus Price Target: $15 (37.2% implied return)
Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ: GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.
Why Do We Think GLDD Will Underperform?
- Sales trends were unexciting over the last five years as its 1.8% annual growth was below the typical industrials company
- Free cash flow margin dropped by 16.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Great Lakes Dredge & Dock is trading at $10.93 per share, or 15.7x forward P/E. If you’re considering GLDD for your portfolio, see our FREE research report to learn more.
Align Technology (ALGN)
Consensus Price Target: $227.30 (33.6% implied return)
Pioneering an alternative to traditional metal braces with nearly invisible plastic aligners, Align Technology (NASDAQ: ALGN) designs and manufactures Invisalign clear aligners, iTero intraoral scanners, and dental CAD/CAM software for orthodontic and restorative treatments.
Why Is ALGN Not Exciting?
- Disappointing clear aligner shipments over the past two years indicate demand is soft and that the company may need to revise its strategy
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7 percentage points
- Diminishing returns on capital suggest its earlier profit pools are drying up
Align Technology’s stock price of $170.15 implies a valuation ratio of 16.7x forward P/E. Check out our free in-depth research report to learn more about why ALGN doesn’t pass our bar.
Stocks We Like More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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.
