
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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here are three stocks where Wall Street’s estimates seem disconnected from reality and some better opportunities to consider.
WD-40 (WDFC)
Consensus Price Target: $264.50 (29.6% implied return)
Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ: WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.
Why Is WDFC Not Exciting?
- Sales trends were unexciting over the last three years as its 6.1% annual growth was below the typical consumer staples company
- Revenue base of $620 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its three-year trend
At $204.10 per share, WD-40 trades at 33.8x forward P/E. Read our free research report to see why you should think twice about including WDFC in your portfolio.
Driven Brands (DRVN)
Consensus Price Target: $21.15 (42.8% implied return)
With approximately 5,000 locations across 49 U.S. states and 13 other countries, Driven Brands (NASDAQ: DRVN) operates a network of automotive service centers offering maintenance, car washes, paint, collision repair, and glass services across North America.
Why Does DRVN Worry Us?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Negative returns on capital show management lost money while trying to expand the business, and its decreasing returns suggest its historical profit centers are aging
Driven Brands is trading at $14.81 per share, or 10.8x forward P/E. To fully understand why you should be careful with DRVN, check out our full research report (it’s free for active Edge members).
Acadia Healthcare (ACHC)
Consensus Price Target: $21.21 (44.6% implied return)
With a network of over 250 facilities serving patients in 38 states and Puerto Rico, Acadia Healthcare (NASDAQ: ACHC) operates facilities providing mental health and substance use disorder treatment services across the United States.
Why Do We Think Twice About ACHC?
- Weak admissions over the past two years suggest it might have to lower prices to accelerate growth
- Efficiency has decreased over the last five years as its adjusted operating margin fell by 5.2 percentage points
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 21.7 percentage points
Acadia Healthcare’s stock price of $14.67 implies a valuation ratio of 8.3x forward P/E. Check out our free in-depth research report to learn more about why ACHC doesn’t pass our bar.
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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-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.


