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.
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 enthusiasm may be misplaced and some other investments worth exploring instead.
Constellation Brands (STZ)
Consensus Price Target: $170.70 (22.8% implied return)
With a presence in more than 100 countries, Constellation Brands (NYSE:STZ) is a globally renowned producer and marketer of beer, wine, and spirits.
Why Is STZ Not Exciting?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Estimated sales decline of 6.3% for the next 12 months implies an even more challenging demand environment
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up
Constellation Brands’s stock price of $139.01 implies a valuation ratio of 12x forward P/E. Dive into our free research report to see why there are better opportunities than STZ.
MGP Ingredients (MGPI)
Consensus Price Target: $36.20 (50.9% implied return)
Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ:MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry
Why Should You Sell MGPI?
- Annual sales declines of 8.6% for the past three years show its products struggled to connect with the market
- Projected sales decline of 12% over the next 12 months indicates demand will continue deteriorating
- Operating margin declined by 18.3 percentage points over the last year as its sales cratered
At $24.00 per share, MGP Ingredients trades at 10x forward P/E. To fully understand why you should be careful with MGPI, check out our full research report (it’s free for active Edge members).
Olaplex (OLPX)
Consensus Price Target: $1.89 (40.3% implied return)
Rising to fame on TikTok because of its “bond building" hair products, Olaplex (NASDAQ:OLPX) offers products and treatments that repair the damage caused by traditional heat and chemical-based styling goods.
Why Does OLPX Fall Short?
- Sales tumbled by 17.3% annually over the last three years, showing consumer trends are working against its favor
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
- Capital intensity has ramped up over the last year as its free cash flow margin decreased by 14.7 percentage points
Olaplex is trading at $1.35 per share, or 13.8x forward P/E. Read our free research report to see why you should think twice about including OLPX in your portfolio.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.