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. Keeping that in mind, here are three stocks where Wall Street’s estimates seem disconnected from reality and some better opportunities to consider.
ICF International (ICFI)
Consensus Price Target: $100.50 (28.9% implied return)
Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ: ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors.
Why Are We Out on ICFI?
- Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 2.9% declines over the past two years
- Forecasted revenue decline of 2.8% for the upcoming 12 months implies demand will fall off a cliff
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 6% annually
At $77.96 per share, ICF International trades at 11.3x forward P/E. If you’re considering ICFI for your portfolio, see our FREE research report to learn more.
Encompass Health (EHC)
Consensus Price Target: $140.33 (20.6% implied return)
With a network of 161 specialized facilities across 37 states and Puerto Rico, Encompass Health (NYSE: EHC) operates inpatient rehabilitation hospitals that help patients recover from strokes, hip fractures, and other debilitating conditions.
Why Does EHC Fall Short?
- Sales trends were unexciting over the last five years as its 4.7% annual growth was below the typical healthcare company
- Free cash flow margin dropped by 1.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Encompass Health’s stock price of $116.35 implies a valuation ratio of 20x forward P/E. Dive into our free research report to see why there are better opportunities than EHC.
Addus HomeCare (ADUS)
Consensus Price Target: $141.50 (17% implied return)
Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ: ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.
Why Is ADUS Not Exciting?
- Revenue base of $1.35 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
Addus HomeCare is trading at $120.99 per share, or 17.3x forward P/E. Check out our free in-depth research report to learn more about why ADUS doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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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