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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
nCino (NCNO)
Consensus Price Target: $35.61 (38% implied return)
Born from the internal technology needs of a community bank in 2011, nCino (NASDAQ: NCNO) provides cloud-based software that helps financial institutions streamline client onboarding, loan origination, and account opening processes.
Why Does NCNO Give Us Pause?
- Sales trends were unexciting over the last two years as its 13.4% annual growth was below the typical software company
- Estimated sales growth of 5.7% for the next 12 months implies demand will slow from its two-year trend
- Gross margin of 60.2% reflects its relatively high servicing costs
nCino’s stock price of $25.80 implies a valuation ratio of 4.9x forward price-to-sales. To fully understand why you should be careful with NCNO, check out our full research report (it’s free for active Edge members).
Coty (COTY)
Consensus Price Target: $5.02 (35.2% implied return)
With a portfolio boasting many household brands, Coty (NYSE: COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.
Why Do We Pass on COTY?
- Organic revenue growth fell short of our benchmarks over the past one years and implies it may need to improve its products, pricing, or go-to-market strategy
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 6.3 percentage points
- Earnings per share have dipped by 14.1% annually over the past three years, which is concerning because stock prices follow EPS over the long term
At $3.72 per share, Coty trades at 8.1x forward P/E. If you’re considering COTY for your portfolio, see our FREE research report to learn more.
PVH (PVH)
Consensus Price Target: $97 (26.6% implied return)
Founded in 1881 by a husband and wife duo, PVH (NYSE: PVH) is a global fashion conglomerate with iconic brands like Calvin Klein and Tommy Hilfiger.
Why Do We Avoid PVH?
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Anticipated sales growth of 2.5% for the next year implies demand will be shaky
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up
PVH is trading at $76.60 per share, or 6.7x forward P/E. Dive into our free research report to see why there are better opportunities than PVH.
Stocks We Like More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. 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-small-cap company Exlservice (+354% 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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