3 of Wall Street’s Favorite Stocks with Open Questions

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. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.

Sleep Number (SNBR)

Consensus Price Target: $4.50 (105% implied return)

Known for mattresses that can be adjusted with regards to firmness, Sleep Number (NASDAQ:SNBR) manufactures and sells its own brand of bedding products such as mattresses, bed frames, and pillows.

Why Do We Think SNBR Will Underperform?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 41.7% annually, worse than its revenue
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

At $2.19 per share, Sleep Number trades at 11.5x forward EV-to-EBITDA. To fully understand why you should be careful with SNBR, check out our full research report (it’s free).

First Watch (FWRG)

Consensus Price Target: $19.58 (61.9% implied return)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

Why Do We Think Twice About FWRG?

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. Cash-burning history and the downward spiral in its margin profile make us wonder if it has a viable business model
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

First Watch is trading at $12.10 per share, or 60.3x forward P/E. Check out our free in-depth research report to learn more about why FWRG doesn’t pass our bar.

Bristow Group (VTOL)

Consensus Price Target: $60.67 (24.9% implied return)

Operating what's essentially an airborne taxi service for some of the world's most remote workplaces, Bristow Group (NYSE:VTOL) operates helicopters that transport workers to offshore oil and gas platforms and conduct search and rescue operations.

Why Do We Steer Clear of VTOL?

1. Annual revenue growth of 5.7% over the last five years was below our standards for the energy upstream and integrated energy sector
2. Smaller revenue base of $1.49 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Poor free cash flow margin of 0.6% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Bristow Group’s stock price of $48.59 implies a valuation ratio of 9.1x forward P/E. Dive into our free research report to see why there are better opportunities than VTOL.

Stocks We Like More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

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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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.