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 estimates seem disconnected from reality and some better opportunities to consider.
Kura Sushi (KRUS)
Consensus Price Target: $75.44 (39.6% implied return)
Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ: KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology.
Why Do We Think Twice About KRUS?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Negative free cash flow raises questions about the return timeline for its investments
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Kura Sushi is trading at $54.03 per share, or 30.8x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than KRUS.
Tennant (TNC)
Consensus Price Target: $110 (48.3% implied return)
As the world’s largest manufacturer of autonomous mobile robots, Tennant (NYSE: TNC) designs, manufactures, and sells cleaning products to various sectors.
Why Do We Avoid TNC?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Projected sales growth of 3.7% for the next 12 months suggests sluggish demand
- Earnings per share fell by 4.3% annually over the last two years while its revenue was flat, showing each sale was less profitable
Tennant’s stock price of $74.16 implies a valuation ratio of 11.4x forward P/E. To fully understand why you should be careful with TNC, check out our full research report (it’s free for active Edge members).
Perma-Fix (PESI)
Consensus Price Target: $20 (41.4% implied return)
Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ: PESI) provides environmental waste treatment services.
Why Should You Sell PESI?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.4% annually over the last five years
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
At $14.14 per share, Perma-Fix trades at 462.3x forward P/E. Check out our free in-depth research report to learn more about why PESI doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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
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