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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. Keeping that in mind, here are three stocks where Wall Street’s estimates seem disconnected from reality and some better opportunities to consider.

Agilysys (AGYS)

Consensus Price Target: $151.50 (66.8% implied return)

Originally a subsidiary of Pioneer-Standard Electronics that distributed electronic components, Agilysys (NASDAQ:AGYS) offers a software-as-service platform that helps hotels, resorts, restaurants, and other hospitality businesses manage their operations and workflows.

Why Do We Think Twice About AGYS?

1. Gross margin of 62.7% reflects its relatively high servicing costs

2. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 4.6 percentage points over the next year

Agilysys is trading at $73.14 per share, or 6.8x forward price-to-sales. If you’re considering AGYS for your portfolio, see our FREE research report to learn more.

Global Industrial (GIC)

Consensus Price Target: $40 (74.2% implied return)

Formerly known as Systemax, Global Industrial (NYSE:GIC) distributes industrial and commercial products to businesses and institutions.

Why Do We Think GIC Will Underperform?

1. 6.2% annual revenue growth over the last two years was slower than its industrials peers

2. Earnings per share fell by 12.3% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable

3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $21.81 per share, Global Industrial trades at 13.3x forward price-to-earnings. To fully understand why you should be careful with GIC, check out our full research report (it’s free).

U.S. Physical Therapy (USPH)

Consensus Price Target: $113 (55.7% implied return)

With a nationwide footprint spanning 671 clinics across 42 states, U.S. Physical Therapy (NYSE:USPH) operates a network of outpatient physical therapy clinics and provides industrial injury prevention services to employers across the United States.

Why Does USPH Give Us Pause?

1. Muted 6.9% annual revenue growth over the last five years shows its demand lagged behind its healthcare peers

2. Modest revenue base of $671.3 million gives it less fixed cost leverage and fewer distribution channels than larger companies

3. Incremental sales over the last five years were much less profitable as its earnings per share fell by 2.9% annually while its revenue grew