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.
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.
RingCentral (RNG)
Consensus Price Target: $33.07 (11.1% implied return)
Built on its proprietary Message Video Phone (MVP) platform that unifies multiple communication methods, RingCentral (NYSE:RNG) provides AI-driven cloud communications and collaboration solutions that enable businesses to connect through voice, video, messaging, and contact center services.
Why Do We Steer Clear of RNG?
- Offerings struggled to generate meaningful interest as its average billings growth of 4.2% over the last year did not impress
- Estimated sales growth of 4.3% for the next 12 months implies demand will slow from its two-year trend
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
RingCentral is trading at $29.75 per share, or 1x forward price-to-sales. If you’re considering RNG for your portfolio, see our FREE research report to learn more.
Charter (CHTR)
Consensus Price Target: $282.81 (18% implied return)
Operating as Spectrum, Charter (NASDAQ:CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.
Why Do We Pass on CHTR?
- The company has faced growth challenges as its 2.6% annual revenue increases over the last five years fell short of other consumer discretionary companies
- Free cash flow margin is forecasted to grow by 1.9 percentage points in the coming year, potentially giving the company more chips to play with
- Returns on capital haven’t budged, indicating management couldn’t drive additional value creation
Charter’s stock price of $239.70 implies a valuation ratio of 5.4x forward P/E. Read our free research report to see why you should think twice about including CHTR in your portfolio.
Azenta (AZTA)
Consensus Price Target: $38.67 (35.1% implied return)
Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ:AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.
Why Do We Think AZTA Will Underperform?
- Annual sales declines of 2.7% for the past two years show its products and services struggled to connect with the market during this cycle
- Sales were less profitable over the last five years as its earnings per share fell by 18.6% annually, worse than its revenue declines
- Long-term business health is up for debate as its cash burn has increased over the last five years
At $28.62 per share, Azenta trades at 31x forward P/E. Check out our free in-depth research report to learn more about why AZTA 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 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.