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.

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’s estimates seem disconnected from reality and some better opportunities to consider.

Kraft Heinz (KHC)

Consensus Price Target: $31.67 (17.2% implied return)

The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ: KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.

Why Should You Dump KHC?

1. Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
2. Projected sales decline of 1.6% for the next 12 months points to an even tougher demand environment ahead
3. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 11.2 percentage points

Kraft Heinz’s stock price of $27.03 implies a valuation ratio of 10.1x forward P/E. To fully understand why you should be careful with KHC, check out our full research report (it’s free).

WillScot Mobile Mini (WSC)

Consensus Price Target: $36.75 (28.6% implied return)

Originally focusing on mobile offices for construction sites, WillScot (NASDAQ: WSC) provides ready-to-use temporary spaces, largely for longer-term lease.

Why Are We Cautious About WSC?

1. 2.4% annual revenue growth over the last two years was slower than its industrials peers
2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 3.4% annually
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5 percentage points

WillScot Mobile Mini is trading at $28.57 per share, or 17.4x forward P/E. Read our free research report to see why you should think twice about including WSC in your portfolio.

Gibraltar (ROCK)

Consensus Price Target: $90.33 (48.3% implied return)

Gibraltar (NASDAQ: ROCK) makes renewable energy, agriculture technology and infrastructure products. Its mission statement is to make everyday living more sustainable.

Why Are We Wary of ROCK?

1. Sales tumbled by 2.2% annually over the last two years, showing market trends are working against its favor during this cycle
2. Gross margin of 25.2% reflects its high production costs
3. Free cash flow margin shrank by 2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $60.91 per share, Gibraltar trades at 12.8x forward P/E. If you’re considering ROCK for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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 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).

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 Kadant (+351% 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