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.
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 estimates seem disconnected from reality and some better opportunities to consider.
Sprout Social (SPT)
Consensus Price Target: $16 (101% implied return)
Born from the recognition that businesses needed a centralized way to handle their growing social media presence, Sprout Social (NASDAQ:SPT) provides a comprehensive software platform that helps businesses manage, analyze, and optimize their presence across various social media networks.
Why Do We Think Twice About SPT?
- Offerings struggled to generate meaningful interest as its average billings growth of 11.1% over the last year did not impress
- Estimated sales growth of 10.8% for the next 12 months implies demand will slow from its two-year trend
- Rapid expansion strategy came at the expense of operating margin profitability
At $7.98 per share, Sprout Social trades at 0.9x forward price-to-sales. Check out our free in-depth research report to learn more about why SPT doesn’t pass our bar.
Inspired (INSE)
Consensus Price Target: $13.50 (57% implied return)
Specializing in digital casino gaming, Inspired (NASDAQ:INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.
Why Should You Dump INSE?
- Annual revenue growth of 9.6% over the last five years was below our standards for the consumer discretionary sector
- Operating margin of 9.6% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.9% for the last two years
Inspired’s stock price of $8.60 implies a valuation ratio of 14x forward P/E. Dive into our free research report to see why there are better opportunities than INSE.
Insight Enterprises (NSIT)
Consensus Price Target: $118.75 (25.9% implied return)
With over 35 years of IT expertise and partnerships with more than 8,000 technology providers, Insight Enterprises (NASDAQ:NSIT) provides end-to-end digital transformation solutions that help businesses modernize their IT infrastructure and maximize the value of technology.
Why Do We Pass on NSIT?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Estimated sales growth of 1.7% for the next 12 months is soft and implies weaker demand
- Earnings per share lagged its peers over the last two years as they only grew by 1.1% annually
Insight Enterprises is trading at $94.30 per share, or 8.7x forward P/E. To fully understand why you should be careful with NSIT, check out our full research report (it’s free).
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.