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. Keeping that in mind, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
Dole (DOLE)
Consensus Price Target: $17.38 (28.6% implied return)
Known for its delicious pineapples and Hawaiian roots, Dole (NYSE: DOLE) is a global agricultural company specializing in fresh fruits and vegetables.
Why Is DOLE Risky?
- Sales stagnated over the last three years and signal the need for new growth strategies
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 8.4%
- Poor expense management has led to an operating margin of 2.8% that is below the industry average
Dole’s stock price of $13.51 implies a valuation ratio of 9.6x forward P/E. If you’re considering DOLE for your portfolio, see our FREE research report to learn more.
Regal Rexnord (RRX)
Consensus Price Target: $180 (25.7% implied return)
Headquartered in Milwaukee, Regal Rexnord (NYSE: RRX) provides power transmission and industrial automation products.
Why Does RRX Give Us Pause?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Earnings per share have dipped by 3.1% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
Regal Rexnord is trading at $143.18 per share, or 13.3x forward P/E. To fully understand why you should be careful with RRX, check out our full research report (it’s free).
Diebold Nixdorf (DBD)
Consensus Price Target: $75.67 (32.7% implied return)
With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf (NYSE: DBD) provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions.
Why Does DBD Fall Short?
- Sales tumbled by 1.8% annually over the last five years, showing market trends are working against its favor during this cycle
- Negative free cash flow raises questions about the return timeline for its investments
- ROIC of 3% reflects management’s challenges in identifying attractive investment opportunities
At $57 per share, Diebold Nixdorf trades at 13.1x forward P/E. Dive into our free research report to see why there are better opportunities than DBD.
Stocks We Like More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-small-cap company Exlservice (+354% 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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