Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
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.
Marqeta (MQ)
Consensus Price Target: $7.03 (27% implied return)
Powering the cards behind innovative fintech services like Block's Cash App, Marqeta (NASDAQ: MQ) provides a cloud-based platform that allows businesses to create customized payment card programs and process card transactions.
Why Is MQ Not Exciting?
- Products and services have few die-hard fans as sales have declined by 19% annually over the last two years
- Overall productivity fell over the last year as its plummeting sales were accompanied by a decline in its operating margin
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Marqeta is trading at $5.53 per share, or 3.9x forward price-to-sales. If you’re considering MQ for your portfolio, see our FREE research report to learn more.
ACV Auctions (ACVA)
Consensus Price Target: $19.35 (86.6% implied return)
Founded in 2014, ACV Auctions (NASDAQ: ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.
Why Does ACVA Give Us Pause?
- High servicing costs result in an inferior gross margin of 26.2% that must be offset through higher volumes
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.7% for the last two years
At $10.37 per share, ACV Auctions trades at 16.9x forward EV/EBITDA. Read our free research report to see why you should think twice about including ACVA in your portfolio.
Freshpet (FRPT)
Consensus Price Target: $86 (72.8% implied return)
Standing out from typical processed pet foods, Freshpet (NASDAQ: FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.
Why Does FRPT Fall Short?
- Revenue base of $1.04 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Negative free cash flow raises questions about the return timeline for its investments
- Negative returns on capital show that some of its growth strategies have backfired
Freshpet’s stock price of $49.76 implies a valuation ratio of 32.1x forward P/E. To fully understand why you should be careful with FRPT, check out our full research report (it’s free).
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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).
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