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3 of Wall Street’s Favorite Stocks We Think Twice About

BMBL Cover Image

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

Bumble (BMBL)

Consensus Price Target: $4.89 (29.8% implied return)

Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ: BMBL) is a leading dating app built with women at the center.

Why Are We Wary of BMBL?

  1. May need to improve its platform and marketing strategy as its 4.8% average growth in paying users underwhelmed
  2. Key performance metrics have been flashing red recently as its average revenue per buyer dropped by 3.9% annually while engagement was weak
  3. Sales are projected to tank by 13.7% over the next 12 months as demand evaporates

At $3.77 per share, Bumble trades at 2.4x forward EV/EBITDA. To fully understand why you should be careful with BMBL, check out our full research report (it’s free for active Edge members).

Luxfer (LXFR)

Consensus Price Target: $17 (23.2% implied return)

With its magnesium alloys used in the construction of the famous Spirit of St. Louis aircraft, Luxfer (NYSE: LXFR) offers specialized materials, components, and gas containment devices to various industries.

Why Should You Sell LXFR?

  1. Sales tumbled by 2.5% annually over the last two years, showing market trends are working against its favor during this cycle
  2. Sales are projected to tank by 4.2% over the next 12 months as its demand continues evaporating
  3. Eroding returns on capital suggest its historical profit centers are aging

Luxfer’s stock price of $13.80 implies a valuation ratio of 11.9x forward P/E. Check out our free in-depth research report to learn more about why LXFR doesn’t pass our bar.

U.S. Physical Therapy (USPH)

Consensus Price Target: $105.33 (31.2% implied return)

With a nationwide footprint spanning 671 clinics across 42 states, U.S. Physical Therapy (NYSE: USPH) operates a network of outpatient physical therapy clinics and provides industrial injury prevention services to employers across the United States.

Why Are We Cautious About USPH?

  1. Modest revenue base of $758.7 million gives it less fixed cost leverage and fewer distribution channels than larger companies
  2. 8.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

U.S. Physical Therapy is trading at $80.27 per share, or 28.1x forward P/E. Dive into our free research report to see why there are better opportunities than USPH.

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-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.

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