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. That said, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.

Getty Images (GETY)

Consensus Price Target: $6.23 (191% implied return)

With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images (NYSE:GETY) is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.

Why Are We Hesitant About GETY?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
2. Free cash flow margin shrank by 6.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Getty Images is trading at $1.68 per share, or 6.9x forward price-to-earnings. If you’re considering GETY for your portfolio, see our FREE research report to learn more.

Designer Brands (DBI)

Consensus Price Target: $5 (59.4% implied return)

Founded in 1969 as a shoe importer and distributor, Designer Brands (NYSE:DBI) is an American discount retailer focused on footwear and accessories.

Why Should You Dump DBI?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
2. ROIC of -0.3% reflects management’s challenges in identifying attractive investment opportunities
3. High net-debt-to-EBITDA ratio of 9× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $2.51 per share, Designer Brands trades at 5x forward price-to-earnings. To fully understand why you should be careful with DBI, check out our full research report (it’s free).

Griffon (GFF)

Consensus Price Target: $101 (47% implied return)

Initially in the defense industry, Griffon (NYSE:GFF) is a now diversified company specializing in home improvement, professional equipment, and building products.

Why Are We Wary of GFF?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.2% annually over the last two years
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.4%

Griffon’s stock price of $67.91 implies a valuation ratio of 11.9x forward price-to-earnings. Read our free research report to see why you should think twice about including GFF in your portfolio, it’s free.

Stocks We Like More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.