In This Article:
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 may be overlooking some important risks and some alternatives with better fundamentals.
Tilray (TLRY)
Consensus Price Target: $1.77 (167% implied return)
Founded in 2013, Tilray Brands (NASDAQ:TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.
Why Do We Steer Clear of TLRY?
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Efficiency has decreased over the last year as its operating margin fell by 70.1 percentage points
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Cash burn has widened over the last year, making us question whether it can reliably generate shareholder value
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Negative returns on capital show that some of its growth strategies have backfired, and its shrinking returns suggest its past profit sources are losing steam
Tilray’s stock price of $0.49 implies a valuation ratio of 6.2x forward EV-to-EBITDA. If you’re considering TLRY for your portfolio, see our FREE research report to learn more.
Cushman & Wakefield (CWK)
Consensus Price Target: $15.44 (42.5% implied return)
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE:CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Why Is CWK Risky?
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Products and services have few die-hard fans as sales have declined by 3.3% annually over the last two years
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Incremental sales over the last five years were much less profitable as its earnings per share fell by 11.1% annually while its revenue grew
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Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $8.80 per share, Cushman & Wakefield trades at 7.5x forward price-to-earnings. Read our free research report to see why you should think twice about including CWK in your portfolio, it’s free.
Jacobs Solutions (J)
Consensus Price Target: $152.73 (17.6% implied return)
With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE:J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions.