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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
PagerDuty (PD)
Consensus Price Target: $20 (25.6% implied return)
Started by three former Amazon engineers, PagerDuty (NYSE: PD) is a software-as-a-service platform that helps companies respond to IT incidents fast and make sure that any downtime is minimized.
Why Are We Wary of PD?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 8.1% underwhelmed
- Persistent operating losses suggest the business manages its expenses poorly
- Free cash flow margin is forecasted to shrink by 3.3 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
PagerDuty’s stock price of $15.92 implies a valuation ratio of 2.9x forward price-to-sales. Read our free research report to see why you should think twice about including PD in your portfolio.
Amkor (AMKR)
Consensus Price Target: $23.85 (36.3% implied return)
Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ: AMKR) provides outsourced packaging and testing for semiconductors.
Why Should You Sell AMKR?
- Annual sales declines of 5.1% for the past two years show its products and services struggled to connect with the market during this cycle
- High input costs result in an inferior gross margin of 14.5% that must be offset through higher volumes
- Substandard operating profitability and its deterioration over the last five years limit its responsiveness to unforeseen market trends
Amkor is trading at $17.50 per share, or 10.7x forward P/E. If you’re considering AMKR for your portfolio, see our FREE research report to learn more.
Blink Charging (BLNK)
Consensus Price Target: $2.42 (236% implied return)
One of the first EV charging companies to go public, Blink Charging (NASDAQ: BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.
Why Are We Hesitant About BLNK?
- Issuance of new shares over the last five years caused its earnings per share to fall by 10.2% annually while its revenue grew
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $0.72 per share, Blink Charging trades at 0.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BLNK.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
