3 of Wall Street’s Favorite Stocks Walking a Fine Line

May 02, 2025 at 00:36 AM EDT

MRVL Cover Image

Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here are three stocks where Wall Street’s estimates seem disconnected from reality and some better opportunities to consider.

Marvell Technology (MRVL)

Consensus Price Target: $103.36 (69.7% implied return)

Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.

Why Does MRVL Worry Us?

Annual sales declines of 1.3% for the past two years show its products and services struggled to connect with the market during this cycle
Persistent operating losses suggest the business manages its expenses poorly
Negative returns on capital show that some of its growth strategies have backfired, and its falling returns suggest its earlier profit pools are drying up

Marvell Technology is trading at $60.89 per share, or 21.9x forward P/E. Check out our free in-depth research report to learn more about why MRVL doesn’t pass our bar.

Victoria's Secret (VSCO)

Consensus Price Target: $23.86 (25.9% implied return)

Spun off from L Brands in 2020, Victoria’s Secret (NYSE: VSCO) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances.

Why Are We Hesitant About VSCO?

Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
Responsiveness to unforeseen market trends is restricted due to its substandard operating profitability

Victoria's Secret’s stock price of $18.96 implies a valuation ratio of 6.9x forward P/E. Read our free research report to see why you should think twice about including VSCO in your portfolio.

Alight (ALIT)

Consensus Price Target: $10.13 (94.7% implied return)

Born from a corporate spinoff in 2017 to focus on employee experience technology, Alight (NYSE: ALIT) provides human capital management solutions that help companies administer employee benefits, payroll, and workforce management systems.

Why Is ALIT Risky?

Annual sales declines of 1% for the past five years show its products and services struggled to connect with the market during this cycle
Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $5.20 per share, Alight trades at 8.2x forward P/E. Check out our free in-depth research report to learn more about why ALIT doesn’t pass our bar.

Stocks That Overcame Trump’s 2018 Tariffs

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.

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3 of Wall Street’s Favorite Stocks Walking a Fine Line

Marvell Technology (MRVL)

Victoria's Secret (VSCO)

Alight (ALIT)

Stocks That Overcame Trump’s 2018 Tariffs

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