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.
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’s enthusiasm may be misplaced and some other investments worth exploring instead.
Opendoor (OPEN)
Consensus Price Target: $1.15 (52.2% implied return)
Founded by real estate guru Eric Wu, Opendoor (NASDAQ: OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.
Why Should You Sell OPEN?
- Sluggish trends in its homes purchased suggest customers aren’t adopting its solutions as quickly as the company hoped
- 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
Opendoor is trading at $0.76 per share, or 0.1x forward price-to-sales. To fully understand why you should be careful with OPEN, check out our full research report (it’s free).
LeMaitre (LMAT)
Consensus Price Target: $104.50 (25.9% 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 Are We Cautious About LMAT?
- Revenue base of $226.3 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Operating margin didn’t move over the last five years, showing it couldn’t increase its efficiency
- Free cash flow margin dropped by 8.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up
At $83 per share, LeMaitre trades at 35.9x forward P/E. Dive into our free research report to see why there are better opportunities than LMAT.
Royalty Pharma (RPRX)
Consensus Price Target: $39.74 (23.7% implied return)
Pioneering a unique business model in the pharmaceutical industry since 1996, Royalty Pharma (NASDAQ: RPRX) acquires rights to receive portions of sales from successful biopharmaceutical products, providing funding to drug developers without conducting research itself.
Why Are We Hesitant About RPRX?
- Annual sales declines of 2% for the past two years show its products and services struggled to connect with the market during this cycle
- Subscale operations are evident in its revenue base of $2.26 billion, meaning it has fewer distribution channels than its larger rivals
Royalty Pharma’s stock price of $32.12 implies a valuation ratio of 6.7x forward P/E. Read our free research report to see why you should think twice about including RPRX in your portfolio.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free.
