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 may be overlooking some important risks and some alternatives with better fundamentals.
Fiverr (FVRR)
Consensus Price Target: $31.90 (59.5% implied return)
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Why Do We Think Twice About FVRR?
- Value proposition isn’t resonating strongly as its active buyers averaged 9.4% drops over the last two years
- Estimated sales growth of 5.4% for the next 12 months implies demand will slow from its three-year trend
- Excessive marketing spend signals little organic demand and traction for its platform
At $20.00 per share, Fiverr trades at 3.1x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than FVRR.
SoundHound AI (SOUN)
Consensus Price Target: $17.19 (61.2% implied return)
Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ: SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.
Why Are We Hesitant About SOUN?
- Sky-high servicing costs result in an inferior gross margin of 39.7% that must be offset through increased usage
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
- Negative free cash flow raises questions about the return timeline for its investments
SoundHound AI is trading at $10.67 per share, or 22.3x forward price-to-sales. If you’re considering SOUN for your portfolio, see our FREE research report to learn more.
Dell (DELL)
Consensus Price Target: $163.30 (25.6% implied return)
Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE: DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.
Why Are We Cautious About DELL?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.7% over the last five years was below our standards for the business services sector
- Average ARR growth of 3.6% has disappointed, suggesting it’s had a hard time winning long-term deals and renewals
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.5 percentage points
Dell’s stock price of $130.03 implies a valuation ratio of 11.2x forward P/E. Read our free research report to see why you should think twice about including DELL in your portfolio.
Stocks We Like More
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 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-small-cap company Exlservice (+354% 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.
