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.

Fresh Del Monte Produce (FDP)

Consensus Price Target: $46 (29.1% implied return)

Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE: FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.

Why Do We Think FDP Will Underperform?

1. Sales were flat over the last three years, indicating it’s failed to expand its business
2. Projected sales decline of 2.9% for the next 12 months points to an even tougher demand environment ahead
3. Gross margin of 8.2% is below its competitors, leaving less money to invest in areas like marketing and production facilities

Fresh Del Monte Produce’s stock price of $35.63 implies a valuation ratio of 12.6x forward P/E. To fully understand why you should be careful with FDP, check out our full research report (it’s free for active Edge members).

Meritage Homes (MTH)

Consensus Price Target: $82.14 (24.8% implied return)

Originally founded in 1985 in Arizona as Monterey Homes, Meritage Homes (NYSE: MTH) is a homebuilder specializing in designing and constructing energy-efficient and single-family homes in the US.

Why Should You Sell MTH?

1. Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 34.4% declines over the past two years
2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 16.8% annually, worse than its revenue
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Meritage Homes is trading at $65.80 per share, or 9.7x forward P/E. Read our free research report to see why you should think twice about including MTH in your portfolio.

Equifax (EFX)

Consensus Price Target: $266.75 (23.1% implied return)

Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax (NYSE: EFX) is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses.

Why Do We Think Twice About EFX?

1. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 5.3 percentage points
2. Incremental sales over the last five years were less profitable as its 3.7% annual earnings per share growth lagged its revenue gains
3. Waning returns on capital imply its previous profit engines are losing steam

At $216.77 per share, Equifax trades at 25.9x forward P/E. Check out our free in-depth research report to learn more about why EFX doesn’t pass our bar.

Stocks We Like More

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 6 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.