Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.

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 may be overlooking some important risks and some alternatives with better fundamentals.

Asana (ASAN)

Consensus Price Target: $10.06 (83.7% implied return)

Born from the founders' frustration with the inefficiencies of email-based collaboration at Facebook, Asana (NYSE: ASAN) provides a work management platform that helps organizations track projects, set goals, and manage workflows in a centralized digital workspace.

Why Should You Sell ASAN?

1. Products, pricing, or go-to-market strategy may need some adjustments as its 9.4% average billings growth over the last year was weak
2. Platform has low switching costs as its net revenue retention rate of 95.7% demonstrates high turnover
3. Complex implementation process for enterprise clients means customers take longer to ramp up, as seen in its extended payback periods

Asana’s stock price of $5.48 implies a valuation ratio of 1.6x forward price-to-sales. Read our free research report to see why you should think twice about including ASAN in your portfolio.

Allegro MicroSystems (ALGM)

Consensus Price Target: $45.83 (24.2% implied return)

The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ: ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers.

Why Are We Wary of ALGM?

1. Annual sales declines of 11.8% for the past two years show its products and services struggled to connect with the market during this cycle
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 15.2% annually while its revenue grew
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Allegro MicroSystems is trading at $36.91 per share, or 43.4x forward P/E. Dive into our free research report to see why there are better opportunities than ALGM.

EVgo (EVGO)

Consensus Price Target: $4.75 (142% 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 Are We Hesitant About EVGO?

1. Suboptimal cost structure is highlighted by its history of operating margin losses
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $1.96 per share, EVgo trades at 30.8x forward EV-to-EBITDA. If you’re considering EVGO 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.