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.

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.

Monro (MNRO)

Consensus Price Target: $18.33 (41% implied return)

Started as a single location in Rochester, New York, Monro (NASDAQ: MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.

Why Do We Pass on MNRO?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
2. Revenue base of $1.21 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
3. Underwhelming 6% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam

At $13 per share, Monro trades at 13.3x forward P/E. Read our free research report to see why you should think twice about including MNRO in your portfolio.

Owens & Minor (OMI)

Consensus Price Target: $9.75 (41.7% implied return)

With roots dating back to 1882 and operations spanning approximately 80 countries, Owens & Minor (NYSE: OMI) is a healthcare solutions company that manufactures medical supplies, distributes products to healthcare providers, and delivers medical equipment directly to patients.

Why Are We Wary of OMI?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.2% for the last two years
2. Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Owens & Minor’s stock price of $6.88 implies a valuation ratio of 3.8x forward P/E. If you’re considering OMI for your portfolio, see our FREE research report to learn more.

Revvity (RVTY)

Consensus Price Target: $124.84 (38% implied return)

Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE: RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.

Why Do We Avoid RVTY?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 8.8 percentage points
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Revvity is trading at $90.48 per share, or 17.5x forward P/E. Check out our free in-depth research report to learn more about why RVTY doesn’t pass our bar.

Stocks We Like More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 176% over the last five years.

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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.