3 of Wall Street’s Favorite Stocks Skating on Thin Ice

June 20, 2025 at 00:37 AM EDT

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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.

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.

Janus (JBI)

Consensus Price Target: $9.70 (22.9% implied return)

Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE: JBI) is a provider of easily accessible self-storage solutions.

Why Do We Avoid JBI?

Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
Sales are projected to tank by 4.9% over the next 12 months as its demand continues evaporating
Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term

Janus’s stock price of $7.89 implies a valuation ratio of 5.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including JBI in your portfolio.

Perma-Fix (PESI)

Consensus Price Target: $18 (78.2% implied return)

Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ: PESI) provides environmental waste treatment services.

Why Are We Out on PESI?

Annual sales declines of 7.3% for the past five years show its products and services struggled to connect with the market during this cycle
Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $10.10 per share, Perma-Fix trades at 92.8x forward EV-to-EBITDA. If you’re considering PESI for your portfolio, see our FREE research report to learn more.

KeyCorp (KEY)

Consensus Price Target: $19.00 (18.2% implied return)

Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE: KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.

Why Are We Cautious About KEY?

Net interest income was flat over the last four years, indicating it’s failed to expand this cycle
Overall productivity fell over the last four years as its plummeting sales were accompanied by a degrading efficiency ratio
Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable

KeyCorp is trading at $16.08 per share, or 1x forward P/B. Check out our free in-depth research report to learn more about why KEY doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

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3 of Wall Street’s Favorite Stocks Skating on Thin Ice

Janus (JBI)

Perma-Fix (PESI)

KeyCorp (KEY)

High-Quality Stocks for All Market Conditions

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