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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here are three stocks where Wall Street’s estimates seem disconnected from reality and some better opportunities to consider.
Adobe (ADBE)
Consensus Price Target: $450.32 (41% implied return)
Originally named after Adobe Creek that ran behind co-founder John Warnock's house, Adobe (NASDAQ: ADBE) develops software products used for digital content creation, document management, and marketing solutions across desktop, mobile, and cloud platforms.
Why Does ADBE Give Us Pause?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 11.6% underwhelmed
- Estimated sales growth of 9% for the next 12 months implies demand will slow from its two-year trend
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
Adobe’s stock price of $319.35 implies a valuation ratio of 5.4x forward price-to-sales. If you’re considering ADBE for your portfolio, see our FREE research report to learn more.
Resideo (REZI)
Consensus Price Target: $41.50 (25.8% implied return)
Resideo Technologies, Inc. (NYSE: REZI) is a manufacturer and distributor of technology-driven products and solutions for home comfort, energy management, water management, and safety and security.
Why Are We Cautious About REZI?
- Estimated sales growth of 2.9% for the next 12 months implies demand will slow from its two-year trend
- Free cash flow margin dropped by 22.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Diminishing returns on capital suggest its earlier profit pools are drying up
Resideo is trading at $32.99 per share, or 12.2x forward P/E. To fully understand why you should be careful with REZI, check out our full research report (it’s free for active Edge members).
CONMED (CNMD)
Consensus Price Target: $54 (24.4% implied return)
With over five decades of experience in surgical innovation since its founding in 1970, CONMED (NYSE: CNMD) develops and manufactures medical devices and equipment for surgical procedures, specializing in orthopedic and general surgery products.
Why Does CNMD Fall Short?
- Sales trends were unexciting over the last two years as its 7.4% annual growth was below the typical healthcare company
- Modest revenue base of $1.35 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $43.42 per share, CONMED trades at 9.3x forward P/E. Dive into our free research report to see why there are better opportunities than CNMD.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 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 Tecnoglass (+1,754% 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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