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3 of Wall Street’s Favorite Stocks We Find Risky

GETY Cover Image

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.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.

Getty Images (GETY)

Consensus Price Target: $4.42 (163% implied return)

With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images (NYSE: GETY) is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.

Why Should You Dump GETY?

  1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
  2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.3 percentage points
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Getty Images’s stock price of $1.68 implies a valuation ratio of 2.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why GETY doesn’t pass our bar.

Sabre (SABR)

Consensus Price Target: $4.66 (60.7% implied return)

Originally a division of American Airlines, Sabre (NASDAQ: SABR) is a technology provider for the global travel and tourism industry.

Why Are We Out on SABR?

  1. Number of central reservation system transactions has disappointed over the past two years, indicating weak demand for its offerings
  2. Poor free cash flow margin of -0.9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $2.90 per share, Sabre trades at 15.8x forward P/E. Read our free research report to see why you should think twice about including SABR in your portfolio.

Wabash (WNC)

Consensus Price Target: $12.75 (33.4% implied return)

With its first trailer reportedly built on two sawhorses, Wabash (NYSE: WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.

Why Do We Think WNC Will Underperform?

  1. Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 36.2% declines over the past two years
  2. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 22.3% annually, worse than its revenue
  3. 8× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Wabash is trading at $9.56 per share, or 12.8x forward P/E. Dive into our free research report to see why there are better opportunities than WNC.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum 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.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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