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. Keeping that in mind, here are three stocks where Wall Street’s estimates seem disconnected from reality and some better opportunities to consider.
Bath and Body Works (BBWI)
Consensus Price Target: $27.62 (64.3% implied return)
Spun off from L Brands in 2020, Bath & Body Works (NYSE: BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.
Why Does BBWI Worry Us?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Forecasted revenue decline of 2.9% for the upcoming 12 months implies demand will fall even further
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
Bath and Body Works’s stock price of $16.81 implies a valuation ratio of 6.8x forward P/E. Check out our free in-depth research report to learn more about why BBWI doesn’t pass our bar.
Lindblad Expeditions (LIND)
Consensus Price Target: $23 (36.2% implied return)
Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ: LIND) offers cruising experiences to remote destinations in partnership with National Geographic.
Why Do We Steer Clear of LIND?
- Muted 16.4% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
- Poor expense management has led to an operating margin of 5.5% that is below the industry average
- Free cash flow margin is not anticipated to grow over the next year
At $16.89 per share, Lindblad Expeditions trades at 129.7x forward P/E. To fully understand why you should be careful with LIND, check out our full research report (it’s free).
Taylor Morrison Home (TMHC)
Consensus Price Target: $74.89 (30.6% implied return)
Named “America’s Most Trusted Home Builder” in 2019, Taylor Morrison Home (NYSE: TMHC) builds single family homes and communities across the United States.
Why Are We Wary of TMHC?
- Backlog has dropped by 33.6% on average over the past two years, suggesting it’s losing orders as competition picks up
- Projected sales decline of 17.2% for the next 12 months points to a tough demand environment ahead
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 3.8% annually
Taylor Morrison Home is trading at $57.33 per share, or 11.4x forward P/E. Read our free research report to see why you should think twice about including TMHC in your portfolio.
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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
