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 estimates seem disconnected from reality and some better opportunities to consider.
fuboTV (FUBO)
Consensus Price Target: $4.50 (10.3% implied return)
Originally launched as a soccer streaming platform, fuboTV (NYSE: FUBO) is a video streaming service specializing in live sports, news, and entertainment content.
Why Do We Steer Clear of FUBO?
- Number of domestic subscribers has disappointed over the past two years, indicating weak demand for its offerings
- Poor expense management has led to operating margin losses
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 7 percentage points
fuboTV’s stock price of $4.08 implies a valuation ratio of 35.6x forward EV-to-EBITDA. If you’re considering FUBO for your portfolio, see our FREE research report to learn more.
Cognex (CGNX)
Consensus Price Target: $48.90 (19.6% implied return)
Founded in 1981 when computer vision was in its infancy, Cognex (NASDAQ: CGNX) develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products.
Why Are We Hesitant About CGNX?
- Efficiency has decreased over the last five years as its adjusted operating margin fell by 12.9 percentage points
- 10.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Eroding returns on capital suggest its historical profit centers are aging
At $40.88 per share, Cognex trades at 37.9x forward P/E. To fully understand why you should be careful with CGNX, check out our full research report (it’s free for active Edge members).
FirstSun Capital Bancorp (FSUN)
Consensus Price Target: $43.25 (27.4% implied return)
Tracing its roots back to 1892 when it first opened its doors in Kansas, FirstSun Capital Bancorp (NASDAQ: FSUN) operates Sunflower Bank, providing commercial and consumer banking services to businesses and individuals across the Southwest region.
Why Is FSUN Not Exciting?
- Muted 2.9% annual revenue growth over the last two years shows its demand lagged behind its banking peers
- Net interest margin dropped by 22.3 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market
- Forecasted tangible book value per share decline of 2.9% for the upcoming 12 months implies profitability will deteriorate significantly
FirstSun Capital Bancorp is trading at $33.94 per share, or 0.8x forward P/B. Dive into our free research report to see why there are better opportunities than FSUN.
Stocks We Like More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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