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.
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 estimates seem disconnected from reality and some better opportunities to consider.
Amplitude (AMPL)
Consensus Price Target: $13.10 (9.2% implied return)
Born out of a failed voice recognition startup by founder Spenser Skates, Amplitude (NASDAQ:AMPL) is data analytics software helping companies improve and optimize their digital products.
Why Does AMPL Worry Us?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 8.7% underwhelmed
- Customers have churned over the last year due to the commoditized nature of its software, as reflected in its 98.7% net revenue retention rate
- Suboptimal cost structure is highlighted by its history of operating losses
Amplitude is trading at $12 per share, or 4.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than AMPL.
Clover Health (CLOV)
Consensus Price Target: $4.69 (40.8% implied return)
Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ:CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.
Why Are We Hesitant About CLOV?
- Sales tumbled by 28.7% annually over the last two years, showing market trends are working against its favor during this cycle
- Weak customer trends over the past two years suggest it may need to improve its products, pricing, or go-to-market strategy
- Negative free cash flow raises questions about the return timeline for its investments
At $3.33 per share, Clover Health trades at 45.2x forward EV-to-EBITDA. If you’re considering CLOV for your portfolio, see our FREE research report to learn more.
Pediatrix Medical Group (MD)
Consensus Price Target: $17.14 (20.8% implied return)
With a network of approximately 2,620 affiliated physicians caring for some of the most vulnerable patients, Pediatrix Medical Group (NYSE:MD) provides specialized physician services focused on neonatal, maternal-fetal, pediatric cardiology and other pediatric subspecialty care across 37 states.
Why Should You Dump MD?
- Weak comparable store sales trends over the past two years suggest there may be few opportunities in its core markets to open new facilities
- Earnings per share fell by 11.7% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Pediatrix Medical Group’s stock price of $14.19 implies a valuation ratio of 9.1x forward P/E. Read our free research report to see why you should think twice about including MD in your portfolio.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 176% over the last five years.
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.