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.

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 may be overlooking some important risks and some alternatives with better fundamentals.

MGM Resorts (MGM)

Consensus Price Target: $47.64 (29% implied return)

Operating several properties on the Las Vegas Strip, MGM Resorts (NYSE: MGM) is a global hospitality and entertainment company known for its resorts and casinos.

Why Do We Avoid MGM?

1. Annual sales growth of 7.8% over the last two years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
3. High net-debt-to-EBITDA ratio of 12× increases the risk of forced asset sales or dilutive financing if operational performance weakens

MGM Resorts is trading at $36.92 per share, or 15.6x forward P/E. To fully understand why you should be careful with MGM, check out our full research report (it’s free).

Align Technology (ALGN)

Consensus Price Target: $186.36 (34.1% implied return)

Pioneering an alternative to traditional metal braces with nearly invisible plastic aligners, Align Technology (NASDAQ: ALGN) designs and manufactures Invisalign clear aligners, iTero intraoral scanners, and dental CAD/CAM software for orthodontic and restorative treatments.

Why Do We Think Twice About ALGN?

1. Underwhelming clear aligner shipments over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 7.5 percentage points
3. Eroding returns on capital suggest its historical profit centers are aging

At $138.95 per share, Align Technology trades at 12.8x forward P/E. Dive into our free research report to see why there are better opportunities than ALGN.

Corebridge Financial (CRBG)

Consensus Price Target: $41.08 (22.2% implied return)

Spun off from insurance giant AIG in 2022 to focus on the growing retirement market, Corebridge Financial (NYSE: CRBG) provides retirement solutions, annuities, life insurance, and institutional risk management products in the United States.

Why Does CRBG Give Us Pause?

1. Insurance offerings face significant market challenges this cycle as net premiums earned contracted by 2.9% annually over the last four years
2. Overall productivity fell over the last two years as its plummeting sales were accompanied by a decline in its pre-tax profit margin
3. Debt-to-equity ratio of 1.2× is concerningly high, indicating excessive leverage that could limit financial flexibility

Corebridge Financial’s stock price of $33.61 implies a valuation ratio of 1.4x forward P/B. Read our free research report to see why you should think twice about including CRBG in your portfolio.

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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

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