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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
Commerce (CMRC)
Consensus Price Target: $4.96 (65.5% implied return)
As a founding member of the MACH Alliance advocating for modern tech standards, Commerce (NASDAQ: CMRC) provides a SaaS platform that enables businesses to build and manage online stores, connect with marketplaces, and integrate with point-of-sale systems.
Why Is CMRC Risky?
- Offerings struggled to generate meaningful interest as its average billings growth of 2.3% over the last year did not impress
- Estimated sales growth of 3.1% for the next 12 months implies demand will slow from its two-year trend
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 4.8% for the last year
Commerce’s stock price of $3.00 implies a valuation ratio of 0.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than CMRC.
Rapid7 (RPD)
Consensus Price Target: $10.39 (45.6% implied return)
With its name inspired by the need for quick responses to cyber threats, Rapid7 (NASDAQ: RPD) provides cybersecurity software and services that help organizations detect vulnerabilities, monitor threats, and respond to security incidents.
Why Do We Steer Clear of RPD?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 1.3% underwhelmed
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
- Efficiency has decreased over the last year as its operating margin fell by 2.8 percentage points
At $7.14 per share, Rapid7 trades at 0.6x forward price-to-sales. To fully understand why you should be careful with RPD, check out our full research report (it’s free).
Progyny (PGNY)
Consensus Price Target: $30.91 (51.8% implied return)
Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ: PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.
Why Does PGNY Fall Short?
- Subscale operations are evident in its revenue base of $1.27 billion, meaning it has fewer distribution channels than its larger rivals
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Progyny is trading at $20.36 per share, or 10.8x forward P/E. Check out our free in-depth research report to learn more about why PGNY doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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).
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