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.
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.
PagerDuty (PD)
Consensus Price Target: $18.88 (22.1% implied return)
Born from the frustration of developers being woken up by unprioritized alerts, PagerDuty (NYSE: PD) is a digital operations management platform that helps organizations detect and respond to IT incidents, outages, and other critical issues in real-time.
Why Do We Think Twice About PD?
- Average billings growth of 5.9% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Estimated sales growth of 5.8% for the next 12 months implies demand will slow from its two-year trend
- Suboptimal cost structure is highlighted by its history of operating margin losses
At $15.46 per share, PagerDuty trades at 2.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than PD.
Peloton (PTON)
Consensus Price Target: $10.48 (43.3% implied return)
Started as a Kickstarter campaign, Peloton (NASDAQ: PTON) is a fitness technology company known for its at-home exercise equipment and interactive online workout classes.
Why Do We Think PTON Will Underperform?
- Demand for its offerings was relatively low as its number of connected fitness subscribers has underwhelmed
- Poor expense management has led to operating margin losses
- Sales over the last five years were less profitable as its earnings per share fell by 16.5% annually while its revenue was flat
Peloton is trading at $7.31 per share, or 39.3x forward P/E. If you’re considering PTON for your portfolio, see our FREE research report to learn more.
Lindblad Expeditions (LIND)
Consensus Price Target: $16.33 (35.6% implied return)
Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ: LIND) offers cruising experiences to remote destinations in partnership with National Geographic.
Why Is LIND Not Exciting?
- Muted 14.5% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
- Operating margin of 4.8% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Negative returns on capital show that some of its growth strategies have backfired
Lindblad Expeditions’s stock price of $12.05 implies a valuation ratio of 2,150.6x forward P/E. To fully understand why you should be careful with LIND, check out our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% 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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