The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
European Wax Center (EWCZ)
Consensus Price Target: $6.71 (42.3% implied return)
Founded by two siblings, European Wax Center (NASDAQ:EWCZ) is a beauty and waxing salon chain specializing in professional wax services and skincare products.
Why Is EWCZ Risky?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Forecasted revenue decline of 1.4% for the upcoming 12 months implies demand will fall off a cliff
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
At $4.72 per share, European Wax Center trades at 15x forward P/E. Read our free research report to see why you should think twice about including EWCZ in your portfolio.
Ibotta (IBTA)
Consensus Price Target: $59.63 (57.8% implied return)
Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE:IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.
Why Are We Cautious About IBTA?
- Subscale operations are evident in its revenue base of $369.5 million, meaning it has fewer distribution channels than its larger rivals
Ibotta is trading at $37.78 per share, or 11.7x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than IBTA.
Independent Bank (INDB)
Consensus Price Target: $79 (22.9% implied return)
Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. (NASDAQ:INDB) operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.
Why Is INDB Not Exciting?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.3% annually over the last two years
- Net interest margin shrank by 29.7 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the yields on its loan book are decreasing or the market is becoming more competitive
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 13.4% annually, worse than its revenue
Independent Bank’s stock price of $64.26 implies a valuation ratio of 0.9x forward P/B. Check out our free in-depth research report to learn more about why INDB doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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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