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3 of Wall Street’s Favorite Stocks with Open Questions

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Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.

Zoom (ZM)

Consensus Price Target: $97.33 (29.7% implied return)

Once the verb that defined remote work during the pandemic ("let's Zoom later"), Zoom (NASDAQ: ZM) provides a cloud-based platform for video meetings, phone calls, team chat, and collaboration tools that helps businesses and individuals connect virtually.

Why Do We Pass on ZM?

  1. Average billings growth of 4% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
  2. Competitive market dynamics make it difficult to retain customers, leading to a weak 98% net revenue retention rate
  3. Projected sales growth of 4.2% for the next 12 months suggests sluggish demand

Zoom’s stock price of $75.05 implies a valuation ratio of 4.6x forward price-to-sales. To fully understand why you should be careful with ZM, check out our full research report (it’s free).

JELD-WEN (JELD)

Consensus Price Target: $2.63 (73.8% implied return)

Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE: JELD) manufactures doors, windows, and other related building products.

Why Should You Sell JELD?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

JELD-WEN is trading at $1.51 per share, or 9.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why JELD doesn’t pass our bar.

Solventum (SOLV)

Consensus Price Target: $90.17 (33.6% implied return)

Founded in 1985, Solventum (NYSE: SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services addressing critical customer and therapeutic patient needs.

Why Is SOLV Risky?

  1. 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
  2. Performance over the past three years shows each sale was less profitable, as its earnings per share fell by 31.6% annually
  3. 26.7 percentage point decline in its free cash flow margin over the last four years reflects the company’s increased investments to defend its market position

At $67.50 per share, Solventum trades at 10.4x forward P/E. Dive into our free research report to see why there are better opportunities than SOLV.

Stocks We Like More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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.

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