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. That said, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.
Exact Sciences (EXAS)
Consensus Price Target: $62.97 (34.7% implied return)
With a mission to detect cancer earlier when it's more treatable, Exact Sciences (NASDAQ: EXAS) develops and markets cancer screening and diagnostic tests, including its flagship Cologuard stool-based colorectal cancer screening test.
Why Does EXAS Worry Us?
- Cash-burning history makes us doubt the long-term viability of its business model
- Push for growth has led to negative returns on capital, signaling value destruction
Exact Sciences is trading at $46.76 per share, or 63.9x forward P/E. Check out our free in-depth research report to learn more about why EXAS doesn’t pass our bar.
DigitalBridge (DBRG)
Consensus Price Target: $16.50 (46.4% implied return)
Transforming from a traditional real estate investor to a digital-focused powerhouse in 2021, DigitalBridge Group (NYSE: DBRG) is a global digital infrastructure investment firm that manages capital and operates assets across data centers, cell towers, fiber networks, and edge infrastructure.
Why Does DBRG Give Us Pause?
- Annual sales declines of 17.6% for the past five years show its products and services struggled to connect with the market during this cycle
- Underwhelming 0.4% return on equity reflects management’s difficulties in finding profitable growth opportunities
DigitalBridge’s stock price of $11.27 implies a valuation ratio of 1.4x forward P/E. Read our free research report to see why you should think twice about including DBRG in your portfolio.
Franklin BSP Realty Trust (FBRT)
Consensus Price Target: $14.70 (29.4% implied return)
Operating as a specialized real estate investment trust (REIT) with roots dating back to 2012, Franklin BSP Realty Trust (NYSE: FBRT) originates and manages a diversified portfolio of commercial real estate debt investments secured by properties in the United States and abroad.
Why Do We Think FBRT Will Underperform?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.7% annually over the last two years
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 2.9% annually over the last five years
At $11.36 per share, Franklin BSP Realty Trust trades at 0.8x forward P/B. To fully understand why you should be careful with FBRT, check out our full research report (it’s free).
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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