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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
Quest Resource (QRHC)
Consensus Price Target: $3.08 (77.2% implied return)
Recycling corporate waste to help companies be more sustainable, Quest Resource (NASDAQ: QRHC) is a provider of waste and recycling services.
Why Are We Out on QRHC?
- Sales tumbled by 2.4% annually over the last two years, showing market trends are working against its favor during this cycle
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Quest Resource’s stock price of $1.74 implies a valuation ratio of 6.1x forward P/E. Read our free research report to see why you should think twice about including QRHC in your portfolio.
Regeneron (REGN)
Consensus Price Target: $716.78 (24.9% implied return)
Founded by scientists who wanted to build a company where science could thrive, Regeneron Pharmaceuticals (NASDAQ: REGN) develops and commercializes medicines for serious diseases, with key products treating eye conditions, allergic diseases, cancer, and other disorders.
Why Is REGN Not Exciting?
- Annual sales growth of 5.9% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Efficiency has decreased over the last five years as its adjusted operating margin fell by 21.4 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
Regeneron is trading at $574 per share, or 15.8x forward P/E. To fully understand why you should be careful with REGN, check out our full research report (it’s free).
Robert Half (RHI)
Consensus Price Target: $43.67 (21.5% implied return)
With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE: RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.
Why Do We Avoid RHI?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Earnings per share fell by 11.3% annually over the last five years while its revenue was flat, showing each sale was less profitable
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $35.94 per share, Robert Half trades at 15.9x forward P/E. Check out our free in-depth research report to learn more about why RHI doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
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 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).
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