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. Keeping that in mind, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.
Agilysys (AGYS)
Consensus Price Target: $134.50 (25.2% implied return)
With a tech stack that powers everything from check-in to checkout at some of the world's top hospitality venues, Agilysys (NASDAQ:AGYS) develops and provides cloud-based and on-premise software solutions for hotels, resorts, casinos, and restaurants to manage operations and enhance guest experiences.
Why Are We Hesitant About AGYS?
- Steep infrastructure costs and weaker unit economics for a software company are reflected in its low gross margin of 63.1%
- Operating margin improvement of 7.2 percentage points over the last year demonstrates its ability to scale efficiently
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 4.8 percentage points over the next year
At $107.46 per share, Agilysys trades at 8x forward price-to-sales. To fully understand why you should be careful with AGYS, check out our full research report (it’s free).
AT&T (T)
Consensus Price Target: $28.76 (24.5% implied return)
Founded by Alexander Graham Bell, AT&T (NYSE:T) is a multinational telecomm conglomerate providing a range of communications and internet services.
Why Should You Sell T?
- Products and services fail to spark excitement with consumers, as seen in its flat sales over the last five years
- Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 6.9% annually
- Free cash flow margin is projected to show no improvement next year
AT&T’s stock price of $23.11 implies a valuation ratio of 9.5x forward P/E. Check out our free in-depth research report to learn more about why T doesn’t pass our bar.
Guardant Health (GH)
Consensus Price Target: $201.64 (24.8% implied return)
Pioneering the field of "liquid biopsy" with technology that can identify cancer-specific genetic mutations from a simple blood draw, Guardant Health (NASDAQ:GH) develops blood tests that detect and monitor cancer by analyzing tumor DNA in the bloodstream, helping doctors make treatment decisions without invasive biopsies.
Why Is GH Not Exciting?
- Revenue base of $1.18 billion indicates it’s still subscale compared to its larger peers (though this creates opportunities to expand into untapped markets)
- Cash-burning history makes us doubt the long-term viability of its business model
- EBITDA losses may force it to accept punitive lending terms or high-cost debt
Guardant Health is trading at $161.55 per share, or 13.8x forward price-to-sales. If you’re considering GH for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.