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

Five9 (FIVN)

Consensus Price Target: $36.38 (53.3% implied return)

Started in 2001, Five9 (NASDAQ: FIVN) offers software-as-a-service that makes it easier for companies to set up and efficiently run call centers to offer more tailored customer support.

Why Does FIVN Give Us Pause?

1. 16.5% annual revenue growth over the last three years was slower than its software peers
2. Estimated sales growth of 8.1% for the next 12 months implies demand will slow from its three-year trend
3. Sky-high servicing costs result in an inferior gross margin of 55.3% that must be offset through increased usage

Five9’s stock price of $23.73 implies a valuation ratio of 1.8x forward price-to-sales. Read our free research report to see why you should think twice about including FIVN in your portfolio.

Regal Rexnord (RRX)

Consensus Price Target: $180.70 (30.1% implied return)

Headquartered in Milwaukee, Regal Rexnord (NYSE: RRX) provides power transmission and industrial automation products.

Why Are We Cautious About RRX?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging

Regal Rexnord is trading at $138.90 per share, or 12.8x forward P/E. To fully understand why you should be careful with RRX, check out our full research report (it’s free).

ManpowerGroup (MAN)

Consensus Price Target: $49 (22.8% implied return)

Founded during the post-World War II economic boom when businesses needed temporary workers, ManpowerGroup (NYSE: MAN) connects millions of people to employment opportunities through its global network of staffing, recruitment, and workforce management services.

Why Do We Pass on MAN?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $39.90 per share, ManpowerGroup trades at 11.5x forward P/E. Check out our free in-depth research report to learn more about why MAN doesn’t pass our bar.

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 6 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

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