Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
Consensus Price Target: $62.78 (24% implied return)
A global leader in its category, Lattice Semiconductor (NASDAQ:LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.
Why Are We Hesitant About LSCC?
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Annual sales declines of 16.1% for the past two years show its products and services struggled to connect with the market during this cycle
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Efficiency has decreased over the last five years as its operating margin fell by 9.7 percentage points
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Earnings growth underperformed the sector average over the last five years as its EPS grew by just 5.6% annually
Lattice Semiconductor’s stock price of $50.63 implies a valuation ratio of 42.4x forward P/E. Dive into our free research report to see why there are better opportunities than LSCC.
Consensus Price Target: $23.27 (65.4% implied return)
Founded in 2007 by three Georgetown University alum, Sweetgreen (NYSE:SG) is a casual quick service chain known for its healthy salads and bowls.
Why Does SG Fall Short?
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Historical operating margin losses point to an inefficient cost structure
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Cash-burning history makes us doubt the long-term viability of its business model
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Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Sweetgreen is trading at $14.07 per share, or 40.8x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including SG in your portfolio, it’s free.
Consensus Price Target: $136.45 (17.1% implied return)
Serving approximately 66,000 clients across 22 states with a focus on “dual eligible” Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ:ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.
Why Are We Cautious About ADUS?
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Smaller revenue base of $1.21 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
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Free cash flow margin didn’t grow over the last five years
At $116.56 per share, Addus HomeCare trades at 18.8x forward P/E. Dive into our free research report to see why there are better opportunities than ADUS.
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.