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 estimates seem disconnected from reality and some better opportunities to consider.
Janus (JBI)
Consensus Price Target: $9.70 (22.9% implied return)
Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE: JBI) is a provider of easily accessible self-storage solutions.
Why Do We Avoid JBI?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Sales are projected to tank by 4.9% over the next 12 months as its demand continues evaporating
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
Janus’s stock price of $7.89 implies a valuation ratio of 5.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including JBI in your portfolio.
Perma-Fix (PESI)
Consensus Price Target: $18 (78.2% implied return)
Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ: PESI) provides environmental waste treatment services.
Why Are We Out on PESI?
- Annual sales declines of 7.3% for the past five years show its products and services struggled to connect with the market during this cycle
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $10.10 per share, Perma-Fix trades at 92.8x forward EV-to-EBITDA. If you’re considering PESI for your portfolio, see our FREE research report to learn more.
KeyCorp (KEY)
Consensus Price Target: $19.00 (18.2% implied return)
Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE: KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.
Why Are We Cautious About KEY?
- Net interest income was flat over the last four years, indicating it’s failed to expand this cycle
- Overall productivity fell over the last four years as its plummeting sales were accompanied by a degrading efficiency ratio
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
KeyCorp is trading at $16.08 per share, or 1x forward P/B. Check out our free in-depth research report to learn more about why KEY doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our 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).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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
