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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
Artivion (AORT)
Consensus price target: $40.91 (62.2% implied return)
Formerly known as CryoLife until its 2022 rebranding, Artivion (NYSE: AORT) develops and manufactures medical devices and preserves human tissues used in cardiac and vascular surgical procedures for patients with aortic disease.
Why Is AORT Risky?
- Revenue base of $481.9 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Cash burn makes us question whether it can achieve sustainable long-term growth
- ROIC of 1.8% reflects management’s challenges in identifying attractive investment opportunities
Artivion’s stock price of $25.23 implies a valuation ratio of 41.3x forward P/E. Read our free research report to see why you should think twice about including AORT in your portfolio.
Oracle (ORCL)
Consensus price target: $235.46 (103% implied return)
Starting as a database company in 1977 and now powering mission-critical systems across the globe, Oracle (NYSE: ORCL) provides enterprise software and hardware products and services that help businesses manage their information technology needs.
Why Are We Wary of ORCL?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 11.9% over the last five years was below our standards for the software sector
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $116.11 per share, Oracle trades at 3.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ORCL.
Ingredion (INGR)
Consensus price target: $119.50 (21.3% implied return)
Known for its ability to turn ordinary corn into thousands of different food ingredients, Ingredion (NYSE: INGR) transforms grains, fruits, vegetables and other plant-based materials into specialty starches, sweeteners and other ingredients for food, beverage and industrial markets.
Why Does INGR Worry Us?
- Sales tumbled by 4.4% annually over the last three years, showing consumer trends are working against it
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 24.2% that must be offset through higher volumes
Ingredion is trading at $98.55 per share, or 8.7x forward P/E. To fully understand why you should be careful with INGR, check out our full research report (it’s free).
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
