Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.

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.

Orion (ORN)

Consensus Price Target: $11.13 (28.6% implied return)

Established in 1994, Orion (NYSE: ORN) provides construction services for marine infrastructure and industrial projects.

Why Do We Think ORN Will Underperform?

1. Annual revenue growth of 2.4% over the last five years was below our standards for the industrials sector
2. High input costs result in an inferior gross margin of 9.3% that must be offset through higher volumes
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Orion is trading at $8.65 per share, or 53.2x forward P/E. To fully understand why you should be careful with ORN, check out our full research report (it’s free).

Commercial Vehicle Group (CVGI)

Consensus Price Target: $4 (104% implied return)

Formed from a partnership between two distinct companies, CVG (NASDAQ: CVGI) offers various components used in vehicles and systems used in warehouses.

Why Do We Pass on CVGI?

1. Sales tumbled by 2.8% annually over the last five years, showing market trends are working against its favor during this cycle
2. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $1.96 per share, Commercial Vehicle Group trades at 14x forward P/E. Read our free research report to see why you should think twice about including CVGI in your portfolio.

BD (BDX)

Consensus Price Target: $217.83 (22.7% implied return)

With a history dating back to 1897 and a presence in virtually every hospital around the globe, Becton Dickinson (NYSE: BDX) develops and manufactures medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions and professionals worldwide.

Why Are We Wary of BDX?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 4.1% for the last five years
2. Free cash flow margin dropped by 10.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. ROIC of 4.3% reflects management’s challenges in identifying attractive investment opportunities

BD’s stock price of $177.51 implies a valuation ratio of 11.9x forward P/E. Dive into our free research report to see why there are better opportunities than BDX.

Stocks We Like More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 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 Comfort Systems (+782% 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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