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Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.

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.

Krispy Kreme (DNUT)

Consensus Price Target: $7.82 (155% implied return)

Famous for its Original Glazed doughnuts and parent company of Insomnia Cookies, Krispy Kreme (NASDAQ:DNUT) is one of the most beloved and well-known fast-food chains in the world.

Why Are We Hesitant About DNUT?

1. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 3.2 percentage points

2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Krispy Kreme’s stock price of $3.07 implies a valuation ratio of 30.5x forward P/E. Read our free research report to see why you should think twice about including DNUT in your portfolio, it’s free.

El Pollo Loco (LOCO)

Consensus Price Target: $14 (47.5% implied return)

With a name that translates into ‘The Crazy Chicken’, El Pollo Loco (NASDAQ:LOCO) is a fast food chain known for its citrus-marinated, fire-grilled chicken recipe that hails from the coastal town of Sinaloa, Mexico.

Why Do We Pass on LOCO?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants

2. Revenue base of $476 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale

3. Projected sales growth of 4% for the next 12 months suggests sluggish demand

El Pollo Loco is trading at $9.49 per share, or 4.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why LOCO doesn’t pass our bar.

Steven Madden (SHOO)

Consensus Price Target: $26.78 (0.1% implied return)

As seen in the infamous Wolf of Wall Street movie, Steven Madden (NASDAQ:SHOO) is a fashion brand famous for its trendy and innovative footwear, appealing to a young and style-conscious audience.

Why Does SHOO Give Us Pause?

1. Muted 5.7% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers

2. Earnings per share lagged its peers over the last five years as they only grew by 9.1% annually

3. Free cash flow margin is forecasted to shrink by 2.6 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors