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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
Edgewell Personal Care (EPC)
Consensus Price Target: $32.38 (39.8% implied return)
Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE:EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.
Why Should You Sell EPC?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- 8.3 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position
- ROIC of 6.2% reflects management’s challenges in identifying attractive investment opportunities
Edgewell Personal Care is trading at $23.16 per share, or 7x forward P/E. Check out our free in-depth research report to learn more about why EPC doesn’t pass our bar.
Organon (OGN)
Consensus Price Target: $14 (39.9% implied return)
Spun off from Merck in 2021 to create a company dedicated to addressing unmet needs in women's health, Organon (NYSE:OGN) is a global healthcare company focused on improving women's health through prescription therapies, medical devices, biosimilars, and established medicines.
Why Do We Steer Clear of OGN?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.8% annually over the last five years
- Earnings per share have contracted by 18% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
- Free cash flow margin dropped by 28.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Organon’s stock price of $10.01 implies a valuation ratio of 2.6x forward P/E. If you’re considering OGN for your portfolio, see our FREE research report to learn more.
Brink's (BCO)
Consensus Price Target: $126.50 (50.1% implied return)
Known for its iconic armored trucks that have been a fixture in American cities since 1859, Brink's (NYSE:BCO) provides secure transportation and management of cash and valuables for banks, retailers, and other businesses worldwide.
Why Do We Think Twice About BCO?
- Annual revenue growth of 4% over the last two years was below our standards for the business services sector
- 3.4 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- ROIC of 12.7% reflects management’s challenges in identifying attractive investment opportunities
At $84.28 per share, Brink's trades at 11.3x forward P/E. To fully understand why you should be careful with BCO, check out our full research report (it’s free).
Stocks We Like More
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 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-micro-cap company Kadant (+351% 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