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.
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.
Tenable (TENB)
Consensus Price Target: $37.47 (59.5% implied return)
Starting with the widely-used Nessus vulnerability scanner first released in 1998, Tenable (NASDAQ: TENB) provides exposure management solutions that help organizations identify, assess, and prioritize cybersecurity vulnerabilities across their IT infrastructure and cloud environments.
Why Does TENB Give Us Pause?
- Products, pricing, or go-to-market strategy may need some adjustments as its 10.4% average billings growth over the last year was weak
- Estimated sales growth of 7.1% for the next 12 months implies demand will slow from its two-year trend
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
Tenable’s stock price of $23.50 implies a valuation ratio of 2.7x forward price-to-sales. Read our free research report to see why you should think twice about including TENB in your portfolio.
Kratos (KTOS)
Consensus Price Target: $99.94 (31.8% implied return)
Established with a commitment to supporting national security, Kratos (NASDAQ: KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications.
Why Is KTOS Not Exciting?
- Free cash flow margin shrank by 9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- ROIC of 3.2% reflects management’s challenges in identifying attractive investment opportunities, and its falling returns suggest its earlier profit pools are drying up
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Kratos is trading at $75.85 per share, or 107.5x forward P/E. If you’re considering KTOS for your portfolio, see our FREE research report to learn more.
Masimo (MASI)
Consensus Price Target: $183.75 (41.3% implied return)
Founded in 1989 to solve the "unsolvable problem" of accurate pulse oximetry during patient movement, Masimo (NASDAQ: MASI) develops and manufactures noninvasive patient monitoring technologies, including its breakthrough pulse oximetry systems that accurately measure blood oxygen levels even during patient movement.
Why Does MASI Fall Short?
- Sales tumbled by 16.3% annually over the last two years, showing market trends are working against its favor during this cycle
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $130.06 per share, Masimo trades at 22.7x forward P/E. Check out our free in-depth research report to learn more about why MASI doesn’t pass our bar.
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
