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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.
Salesforce (CRM)
Consensus Price Target: $241.72 (39.1% implied return)
With its cloud-based platform named after its stock ticker symbol CRM (Customer Relationship Management), Salesforce (NYSE: CRM) provides customer relationship management software that helps businesses connect with their customers across sales, service, marketing, and commerce.
Why Do We Think Twice About CRM?
- Average billings growth of 10.5% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Anticipated sales growth of 10% for the next year implies demand will be shaky
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
Salesforce’s stock price of $173.83 implies a valuation ratio of 3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than CRM.
B&G Foods (BGS)
Consensus Price Target: $4.80 (33.5% implied return)
Started as a small grocery store in New York City, B&G Foods (NYSE: BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.
Why Do We Steer Clear of BGS?
- Sales tumbled by 5.4% annually over the last three years, showing consumer trends are working against it
- Earnings per share decreased by more than its revenue over the last three years, partly because it diluted shareholders
- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $3.60 per share, B&G Foods trades at 6.1x forward P/E. Check out our free in-depth research report to learn more about why BGS doesn’t pass our bar.
Mayville Engineering (MEC)
Consensus Price Target: $36.50 (24% implied return)
Originally founded solely on tool and die manufacturing, Mayville Engineering Company (NYSE: MEC) specializes in metal fabrication, tube bending, and welding to be used in various industries.
Why Does MEC Give Us Pause?
- Sales tumbled by 4.3% annually over the last two years, showing market trends are working against it during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- High net-debt-to-EBITDA ratio of 5× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Mayville Engineering is trading at $29.44 per share, or 55.3x forward P/E. If you’re considering MEC for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
