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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here are three stocks where Wall Street’s estimates seem disconnected from reality and some better opportunities to consider.
PVH (PVH)
Consensus Price Target: $91.73 (40.1% implied return)
Founded in 1881 by a husband and wife duo, PVH (NYSE: PVH) is a global fashion conglomerate with iconic brands like Calvin Klein and Tommy Hilfiger.
Why Do We Avoid PVH?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Estimated sales growth of 1.8% for the next 12 months is soft and implies weaker demand
- ROIC of 2.9% reflects management’s challenges in identifying attractive investment opportunities
PVH’s stock price of $65.50 implies a valuation ratio of 5x forward P/E. If you’re considering PVH for your portfolio, see our FREE research report to learn more.
United Airlines (UAL)
Consensus Price Target: $95.36 (20.5% implied return)
Founded in 1926, United Airlines Holdings (NASDAQ: UAL) operates a global airline network, providing passenger and cargo air transportation services across domestic and international routes.
Why Should You Sell UAL?
- Performance surrounding its revenue passenger miles has lagged its peers
- Projected 6.8 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Underwhelming 5.6% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $79.14 per share, United Airlines trades at 7.5x forward P/E. To fully understand why you should be careful with UAL, check out our full research report (it’s free).
Baxter (BAX)
Consensus Price Target: $38.34 (26.2% implied return)
With a history dating back to 1931 and products used in over 100 countries, Baxter International (NYSE: BAX) provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide.
Why Is BAX Risky?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 10.3% annually over the last two years
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 4.7% annually, worse than its revenue
Baxter is trading at $30.39 per share, or 12.1x forward P/E. Read our free research report to see why you should think twice about including BAX in your portfolio.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% 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
