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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
PlayStudios (MYPS)
Consensus Price Target: $1.75 (171% implied return)
Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games.
Why Do We Pass on MYPS?
- Performance surrounding its daily active users has lagged its peers
- Historical operating margin losses point to an inefficient cost structure
- Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential
At $0.65 per share, PlayStudios trades at 2.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why MYPS doesn’t pass our bar.
Tilly's (TLYS)
Consensus Price Target: $2.25 (75.9% implied return)
With an emphasis on skate and surf culture, Tilly’s (NYSE:TLYS) is a specialty retailer that sells clothing, footwear, and accessories geared towards fashion-forward teens and young adults.
Why Do We Think TLYS Will Underperform?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Sales were less profitable over the last six years as its earnings per share fell by 25% annually, worse than its revenue declines
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Tilly’s stock price of $1.28 implies a valuation ratio of 0.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than TLYS.
Avantor (AVTR)
Consensus Price Target: $13.64 (23.2% implied return)
With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE:AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.
Why Is AVTR Not Exciting?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Avantor is trading at $11.07 per share, or 12.6x forward P/E. To fully understand why you should be careful with AVTR, check out our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
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
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