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. Keeping that in mind, here are three stocks where Wall Street’s estimates seem disconnected from reality and some better opportunities to consider.
EVgo (EVGO)
Consensus Price Target: $4.25 (76.6% implied return)
Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ: EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.
Why Is EVGO Not Exciting?
- Poor expense management has led to operating margin losses
- Cash-burning history makes us doubt the long-term viability of its business model
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
EVgo is trading at $2.41 per share, or 14.9x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why EVGO doesn’t pass our bar.
LeMaitre (LMAT)
Consensus Price Target: $118.75 (30% implied return)
Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions.
Why Does LMAT Fall Short?
- Modest revenue base of $256.3 million gives it less fixed cost leverage and fewer distribution channels than larger companies
LeMaitre’s stock price of $91.35 implies a valuation ratio of 30.7x forward P/E. Dive into our free research report to see why there are better opportunities than LMAT.
Peabody Energy (BTU)
Consensus Price Target: $34.33 (18.4% implied return)
Beginning with a single wagon hauling coal in Illinois back when Grover Cleveland was president, Peabody Energy (NYSE: BTU) mines coal used by electricity generators and steel manufacturers.
Why Do We Steer Clear of BTU?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2.7% annually over the last ten years
- Gross margin of 24.9% reflects its high production costs and unfavorable asset base
- Expenses have increased as a percentage of revenue over the last five years as its EBITDA margin fell by 25.1 percentage points
At $29 per share, Peabody Energy trades at 13.1x forward P/E. If you’re considering BTU for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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.
