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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.
LegalZoom (LZ)
Consensus Price Target: $12.36 (22.7% implied return)
Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ:LZ) offers online legal services and documentation assistance for individuals and businesses.
Why Is LZ Not Exciting?
- Lackluster 5.7% annual revenue growth over the last three years indicates the company is losing ground to competitors
- Platform monetization efforts took a back seat over the last two years as it focused on growing its users
- High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum
LegalZoom is trading at $10.07 per share, or 9.8x forward EV/EBITDA. Check out our free in-depth research report to learn more about why LZ doesn’t pass our bar.
Grand Canyon Education (LOPE)
Consensus Price Target: $222.67 (41.9% implied return)
Founded in 1949, Grand Canyon Education (NASDAQ:LOPE) is an educational services provider known for its operation at Grand Canyon University.
Why Should You Sell LOPE?
- Performance surrounding its students has lagged its peers
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 7.4% annually
- Free cash flow margin is expected to increase by 1.1 percentage points next year, suggesting the company will have more capital to invest or return to shareholders
At $156.92 per share, Grand Canyon Education trades at 16.5x forward P/E. To fully understand why you should be careful with LOPE, check out our full research report (it’s free for active Edge members).
UFP Industries (UFPI)
Consensus Price Target: $113.67 (23.2% implied return)
Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ:UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.
Why Is UFPI Risky?
- Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Diminishing returns on capital suggest its earlier profit pools are drying up
UFP Industries’s stock price of $92.29 implies a valuation ratio of 16.6x forward P/E. Read our free research report to see why you should think twice about including UFPI in your portfolio.
Stocks We Like More
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).
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 Exlservice (+354% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.