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3 of Wall Street’s Favorite Stocks with Mounting Challenges

BGS 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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.

B&G Foods (BGS)

Consensus Price Target: $5.50 (34.1% implied return)

Started as a small grocery store in New York City, B&G Foods (NYSE: BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.

Why Is BGS Risky?

  1. Annual revenue declines of 3.3% over the last three years indicate problems with its market positioning
  2. Sales were less profitable over the last three years as its earnings per share fell by 30.8% annually, worse than its revenue declines
  3. High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens

B&G Foods’s stock price of $4.10 implies a valuation ratio of 5.7x forward P/E. Read our free research report to see why you should think twice about including BGS in your portfolio.

Jazz Pharmaceuticals (JAZZ)

Consensus Price Target: $184.76 (65% implied return)

Originally founded in 2003 and now headquartered in Ireland following a 2012 tax inversion merger, Jazz Pharmaceuticals (NASDAQGS:JAZZ) develops and markets medicines for sleep disorders, epilepsy, and cancer, with a focus on treatments for patients with limited therapeutic options.

Why Does JAZZ Give Us Pause?

  1. Annual revenue growth of 4.3% over the last two years was below our standards for the healthcare sector
  2. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 6.7 percentage points
  3. Underwhelming 5.3% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam

Jazz Pharmaceuticals is trading at $112 per share, or 4.6x forward P/E. Check out our free in-depth research report to learn more about why JAZZ doesn’t pass our bar.

EchoStar (SATS)

Consensus Price Target: $31.33 (58.1% implied return)

Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ: SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.

Why Does SATS Worry Us?

  1. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 11.5% annually
  2. Free cash flow margin shrank by 6.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $19.82 per share, EchoStar trades at 3.6x forward EV-to-EBITDA. To fully understand why you should be careful with SATS, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

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.

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