Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.

Home Depot (HD)

Consensus Price Target: $408.48 (26.5% implied return)

Founded and headquartered in Atlanta, Georgia, Home Depot (NYSE: HD) is a home improvement retailer that sells everything from tools to building materials to appliances.

Why Does HD Fall Short?

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 1.5% for the last three years
2. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
3. Gross margin of 33.4% is an output of its commoditized inventory

Home Depot’s stock price of $323.00 implies a valuation ratio of 21.4x forward P/E. Check out our free in-depth research report to learn more about why HD doesn’t pass our bar.

Shoe Carnival (SCVL)

Consensus Price Target: $22 (42.9% implied return)

Known for its playful atmosphere that features carnival elements, Shoe Carnival (NASDAQ: SCVL) is a retailer that sells footwear from mainstream brands for the entire family.

Why Are We Out on SCVL?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Smaller revenue base of $1.14 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Sales were less profitable over the last three years as its earnings per share fell by 21.7% annually, worse than its revenue declines

At $15.39 per share, Shoe Carnival trades at 10.5x forward P/E. Read our free research report to see why you should think twice about including SCVL in your portfolio.

Wolverine Worldwide (WWW)

Consensus Price Target: $23.20 (46.2% implied return)

Founded in 1883, Wolverine Worldwide (NYSE: WWW) is a global footwear company with a diverse portfolio of brands including Merrell, Hush Puppies, and Saucony.

Why Should You Sell WWW?

1. Flat sales over the last five years suggest it must innovate and find new ways to grow
2. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 7.8% annually
3. Free cash flow margin is expected to remain in place over the coming year

Wolverine Worldwide is trading at $15.87 per share, or 10.9x forward P/E. To fully understand why you should be careful with WWW, check out our full research report (it’s free).

Stocks We Like More

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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.