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.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.
Lincoln Educational (LINC)
Consensus Price Target: $26.20 (25.2% implied return)
Established in 1946, Lincoln Educational (NASDAQ:LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.
Why Do We Think LINC Will Underperform?
- Demand for its offerings was relatively low as its number of enrolled students has underwhelmed
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Diminishing returns on capital suggest its earlier profit pools are drying up
Lincoln Educational is trading at $20.92 per share, or 10.1x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including LINC in your portfolio.
Bruker (BRKR)
Consensus Price Target: $46.73 (45.8% implied return)
With roots dating back to the pioneering days of nuclear magnetic resonance technology, Bruker (NASDAQ:BRKR) develops and manufactures high-performance scientific instruments that enable researchers and industrial analysts to explore materials at microscopic, molecular, and cellular levels.
Why Are We Hesitant About BRKR?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Free cash flow margin dropped by 12.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Waning returns on capital imply its previous profit engines are losing steam
Bruker’s stock price of $32.04 implies a valuation ratio of 12.1x forward P/E. Dive into our free research report to see why there are better opportunities than BRKR.
Encore Capital Group (ECPG)
Consensus Price Target: $57.25 (26.8% implied return)
Operating in the often misunderstood world of debt collection since 1999, Encore Capital Group (NASDAQ:ECPG) purchases portfolios of defaulted consumer debt at deep discounts and works with individuals to recover these obligations while helping them toward financial recovery.
Why Does ECPG Fall Short?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Earnings per share fell by 27.6% annually over the last five years while its revenue was flat, showing each sale was less profitable
- 13× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $45.14 per share, Encore Capital Group trades at 7.2x forward P/E. If you’re considering ECPG for your portfolio, see our FREE research report to learn more.
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 Tecnoglass (+1,754% 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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