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.
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 may be overlooking some important risks and some alternatives with better fundamentals.
Dollar Tree (DLTR)
Consensus Price Target: $124.70 (38.5% implied return)
A treasure hunt because there’s no guarantee of consistent product selection, Dollar Tree (NASDAQ: DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices.
Why Are We Cautious About DLTR?
- Annual sales declines of 11.8% for the past three years show its products struggled to connect with the market
- Lack of new stores puts a ceiling on its growth and reflects a focus on optimizing sales at existing locations
- ROIC of 7% reflects management’s challenges in identifying attractive investment opportunities
At $90.01 per share, Dollar Tree trades at 14x forward P/E. Check out our free in-depth research report to learn more about why DLTR doesn’t pass our bar.
Myriad Genetics (MYGN)
Consensus Price Target: $6.25 (46.9% implied return)
Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ: MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health.
Why Do We Pass on MYGN?
- 3.5% annual revenue growth over the last two years was slower than its healthcare peers
- Negative returns on capital show management lost money while trying to expand the business, and its falling returns suggest its earlier profit pools are drying up
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Myriad Genetics is trading at $4.26 per share, or 32.9x forward P/E. Read our free research report to see why you should think twice about including MYGN in your portfolio.
Antero Resources (AR)
Consensus Price Target: $50.19 (36.9% implied return)
Holding roughly 521,000 net acres across West Virginia, Ohio, and Pennsylvania, Antero Resources (NYSE: AR) drills and produces natural gas, natural gas liquids, and oil from underground rock formations in the Appalachian Basin.
Why Do We Think Twice About AR?
- 5.6% annual revenue growth over the last five years was slower than its energy upstream and integrated energy peers
- Efficiency has decreased over the last five years as its EBITDA margin fell by 5.1 percentage points
Antero Resources’s stock price of $36.67 implies a valuation ratio of 8.2x forward P/E. If you’re considering AR for your portfolio, see our FREE research report to learn more.
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
