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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here are three stocks where Wall Street’s estimates seem disconnected from reality and some better opportunities to consider.
eHealth (EHTH)
Consensus Price Target: $10 (140% implied return)
Aiming to address a high-stakes and often confusing decision, eHealth (NASDAQ: EHTH) guides consumers through health insurance enrollment and related topics.
Why Are We Cautious About EHTH?
- Value proposition isn’t resonating strongly as its estimated membership averaged 1.8% drops over the last two years
- Forecasted revenue decline of 3.4% for the upcoming 12 months implies demand will fall off a cliff
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $4.17 per share, eHealth trades at 2.7x forward EV/EBITDA. If you’re considering EHTH for your portfolio, see our FREE research report to learn more.
CONMED (CNMD)
Consensus Price Target: $66.60 (24.4% implied return)
With over five decades of experience in surgical innovation since its founding in 1970, CONMED (NYSE: CNMD) develops and manufactures medical devices and equipment for surgical procedures, specializing in orthopedic and general surgery products.
Why Are We Hesitant About CNMD?
- 6.7% annual revenue growth over the last five years was slower than its healthcare peers
- Modest revenue base of $1.32 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Underwhelming 5% return on capital reflects management’s difficulties in finding profitable growth opportunities
CONMED is trading at $53.55 per share, or 12x forward P/E. Dive into our free research report to see why there are better opportunities than CNMD.
ANI Pharmaceuticals (ANIP)
Consensus Price Target: $81.17 (29.7% implied return)
With a diverse portfolio of 116 pharmaceutical products and a growing rare disease platform, ANI Pharmaceuticals (NASDAQ: ANIP) develops, manufactures, and markets branded and generic prescription pharmaceuticals, with a focus on rare disease treatments.
Why Does ANIP Worry Us?
- Revenue base of $674.1 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 7 percentage points
- Negative returns on capital show that some of its growth strategies have backfired
ANI Pharmaceuticals’s stock price of $62.56 implies a valuation ratio of 9.7x forward P/E. Check out our free in-depth research report to learn more about why ANIP doesn’t pass our bar.
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 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-small-cap company Comfort Systems (+782% 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
