The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
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.
Hyster-Yale Materials Handling (HY)
Consensus Price Target: $50 (34.8% implied return)
Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE: HY) designs, manufactures, and sells materials handling equipment to various sectors.
Why Are We Out on HY?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Projected sales decline of 6.9% for the next 12 months points to an even tougher demand environment ahead
- Issuance of new shares partly offset its revenue growth over the last five years as its earnings per share were flat
Hyster-Yale Materials Handling’s stock price of $37.08 implies a valuation ratio of 5.9x forward EV-to-EBITDA. To fully understand why you should be careful with HY, check out our full research report (it’s free).
PAR Technology (PAR)
Consensus Price Target: $81.75 (70.3% implied return)
Originally founded in 1968 as a defense contractor for the U.S. government, PAR Technology (NYSE: PAR) provides cloud-based software, payment processing, and hardware solutions that help restaurants manage everything from point-of-sale to customer loyalty programs.
Why Are We Hesitant About PAR?
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Negative returns on capital show that some of its growth strategies have backfired
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
PAR Technology is trading at $48 per share, or 129.9x forward P/E. Read our free research report to see why you should think twice about including PAR in your portfolio.
ePlus (PLUS)
Consensus Price Target: $92 (27.6% implied return)
Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ: PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.
Why Do We Pass on PLUS?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Projected sales growth of 3.2% for the next 12 months suggests sluggish demand
- Earnings per share have contracted by 6.2% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
At $72.11 per share, ePlus trades at 14x forward EV-to-EBITDA. If you’re considering PLUS for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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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